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There are two financial security parameters or components in a carry-back loan. The first component is the promissory note where the buyer formally promises to pay back the loan to the seller. <\/p>
This note determines the type of debt and the terms of the loan repayment like the loan amount, rate of interest, monthly payments, total number of payments, and due date<\/p>\n
The second component in a carryback loan is the mortgage. In some states, a deed of trust, deed in trust, or trust deed will be used as a security component instead of a mortgage. <\/p>
All accomplish the same thing though; they tie the promissory note or notes to a piece of property. It also defines what the owner can do with the property so long as the debt is in place. <\/p>
The mortgage also defines what the seller will do if the buyer fails to pay as defined in the promissory note.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t