Seller Carryback Fanancing, it's not extinct!!!

Mortgage and Lending with Sunstreet Mortgage LLC. Licensed Mortgage Professional NMLS# 222004

Here's the scenario: You have a listing for sale and unfortunately not too many prospects coming to look at the home. Your seller comes to you and asks why no one is calling and what you plan to do about it. Could you have missed something in your interview with the seller. It's not really your fault. 

Most Realtors have basically placed Seller Carry Back Financing on a shelf because lenders all but buried that option. In fact Fannie Mae guides use to prohibit the use of seller carry back financing relegating it to the evil sub prime lending channel. Times have changed and this option is on the table with some lenders.

So do yourself a favor and ask your sellers or potential sellers if they would consider carrying back a piece of the mortgage. The worst they can say is no but if they are willing to carry back some amount in the form of a second mortgage at a nice rate of return you will be the person behind the curtain there to solve their problem.

For more information on what to ask your seller or next listing appointment e-mail or call me.

Michael in Tucson

Michael A. Rohde

Sunstreet Mortgage LLC


Comments (7)

Patrick Randles
Nova Home Loans - Tucson, AZ

I can't say that I have thought about this any time recently. Way to think outside of the box.

Aug 18, 2009 04:41 AM
Sandy McKee
Sunstreet Mortgage - Tucson, AZ

Nice work Mike. It is always nice to have another bullet in the arsenal. Thanks, Sandy

Aug 18, 2009 09:26 AM
Michael Rohde
Sunstreet Mortgage LLC. Licensed Mortgage Professional - Tucson, AZ

Sandy, Thanks for the positives.


Thanks Pat, I know it's a little outside the norm. But these times, as you know, call for some outside thinking. I gotta do my part.

Aug 18, 2009 10:15 AM
Troy Erickson AZ Realtor (602) 295-6807
HomeSmart - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Michael - I think this could be a real option for some who couldn't finance the home any other way.  I know it may be risky for the seller, but given the right situation, it could be a real benefit.

Aug 18, 2009 11:11 AM
Michael Rohde
Sunstreet Mortgage LLC. Licensed Mortgage Professional - Tucson, AZ

Thank you Troy. I think in todays market the more questions you can ask the seller about what they are willing to do to help their property sell the more options you can focus in on to help sell that property. I appreciate your comment and support.

Aug 19, 2009 04:18 AM
Paul Franciskato
Asset Brokering Services - Junction City, KS


It's great to read information about seller-financing here at ActiveRain!  My experience in speaking with realtors and other real estate professionals is that some are familiar with it but it is not widely embraced.  Many people are reluctant or simply not interested in considering seller-financing I believe because of a lack of knowledge.  The great thing is, there are title agents and real estate attorneys who will assist in the creation of a seller-financed note for those who need help!  Thanks for helping to inform the community about this!

Feb 05, 2010 01:43 PM
Michael Rohde


Thank you for taking time out to comment. I do believe this is an untapped opportunity for many situations. We are always looking for options. This is a viable one yet.

Take care,

Feb 08, 2010 02:44 AM