Choose the one most appropriate answer for each.
-a method of selling and financing property whereby the buyer obtains possession but the seller retains the title
A)adjustment period
B)adjustable rate mortgage (ARM)
C)blanket mortgage
D)blended-rate loan
E)buy-down mortgage
F)carryback financing
G)contract for deed
H)equity mortgage
I)equity sharing
J)graduated payment mortgage
K)interest rate cap
L)negative amortization
M)option
N)overencumbered property
O)package mortgage
P)payment cap
Q)reverse mortgage
R)sale and leaseback
S)subordination
T)wraparound mortgage

Question

Quizplus · Accepted Answer

A contract for deed, also known as a land contract, is a method of selling and financing property in which the buyer takes possession but the seller retains the title until the contract is paid in full.

Answer: F
 Carryback financing is another term for seller financing, in which the seller assists with the financing by allowing the buyer to make payments directly to the seller instead of a traditional lender.

Answer: T
 A wraparound mortgage allows the buyer to obtain financing from the seller, who then uses the existing mortgage on the property to secure the new loan. The seller retains the original mortgage and receives payments from the buyer, while the buyer makes payments to the seller for the new loan.

All three of these options involve the seller providing financing to the buyer while retaining some form of control over the property.

Choose the One Most Appropriate Answer for Each