What is a seller held second mortgage?

Hi,

Are you referring to seller carry back mortgages? Seller carry back mortgage is one type of owner financing, wherein the seller carries a second mortgage on the property on behalf of the buyer. It is quite helpful for those buyers who do not qualify for a loan of the full amount of the home's purchase price.

A seller-held second mortgage is in fact a mortgage held by the seller to attract buyers to the property at hand.
In general, buyers will have to sign a promissory and a mortgage note and start sending monthly payments to the seller, and/or make a balloon payment in 2 or three years.

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The seller holds a 2nd mortgage in lieu of getting the money from the buyer at close that way a buyer can have a partial down payment and a lower first mortgage