Definitions for "Vendor Take Back mortgage"
When sellers use their equity in a property to provide some or all of the mortgage financing in order to sell the property.
A mortgage provided by the vendor (seller) to the buyer.
Mortgage financing arranged between the seller of the property and the buyer. The title is trans-ferred to the buyer. Often this type of loan is a second mortgage which the seller is willing to arrange at below market rates to ensure the buyer can purchase the house. Most of these arrangements are not renewable or transferable to the next owner of the house.