Finance
A Washington seller agrees to carry back a second mortgage to help a buyer qualify. The seller should be aware that:
AThe seller becomes a lender and must comply with applicable lending laws✓ Correct
BCarrying a second mortgage has no legal implications for the seller
CThe seller loses all rights to the property upon carrying a second mortgage
DSecond mortgages are illegal in Washington
Explanation
When a seller carries back financing, they become a lender and may be subject to federal and state lending laws, including disclosure requirements. Additionally, the first lender must approve the second mortgage, as having undisclosed secondary financing is fraud.
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