Where Are The Best Places To Find Carryback Loans?

In a market where bank financing is hard to come by, one of the first ways sellers express increased motivation is to offer carry back financing. These loans are available when the seller is strongly motivated to sell their property. The longer a property sits on the market, a seller will be more and more motivated to sell. Common examples of situations where carryback loans are common:

  • Property has fallen out of contract several times because buyers cannot obtain bank financing
  • Property has been on the market without offers
  • Property requires repairs
  • For Sale by Owner listings
  • All the mortgages on the property have been paid off and/or the property is owned free and clear
  • Properties with high levels of seller equity
  • Property is owned by an absentee landlord or the property is sitting vacant
  • Places in a slowly moving market
  • Properties with owners who are investors and understand how carry back financing benefits them

Always remember to keep an open dialogue with your sellers and their representatives.  Make sure they know you would like to pursue carry back financing.

It helps to attach bank financing offers and loan pre-approvals to your offers.  If the seller can see your financing comes from a reputable source, even if it is short of the purchase price, they will be more apt to extend carry back financing.