A second mortgage amortized over 20 years or more but with a balloon payment due after 5 or 10 years that is paid to the previous owner of a home is an example of

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This is an example of seller financing, in which the previous owner of the home acts as the lender and receives a balloon payment after a certain period of time. This type of financing may be beneficial for buyers who have difficulty obtaining a traditional mortgage, but it also poses risks and should be thoroughly understood before entering into an agreement. The other options listed do not accurately describe the situation described in the question.

A Second Mortgage Amortized Over 20 Years or More but with a Balloon