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Law May Stymie Your Carry-Back Mortgage Plans

Published: February 15, 2014

It's not good news for a seller when your buyer can't qualify for a mortgage from a bank. In this situation, the seller has two alternatives: He or she can start looking for another buyer, or act as the bank for the buyer and carry the mortgage him or herself. To both the seller and the buyer, this may sound like an ideal plan, but thanks to a rule implemented in 2010, this option may not be the best choice for either of you.