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Seller - Buyer Arrangements

There are several different financing arrangements are possible between buyer and seller other than a traditional mortgage. Here are 3 of the more common arrangements.

Land contracts and seller financing: The buyer receives a deed to the property but makes agreed-upon payments to the seller rather than a lender until the entire amount is paid, at which point the seller releases a satisfaction of the mortgage lien.

Lease-option: The buyers are tenants who have a legally binding contract to purchase the property if they want to do so; the seller is the owner and their landlord in the meantime.

Sale-leaseback: The buyer obtains a deed and becomes the full owner immediately after the sale. Meanwhile, the former owner continues to live there as a tenant.

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