      
Northeastern Capital
Resources, Inc.
959 State Route 9
Queensbury, NY 12804
Phone: (800) 760-9330
Fax: (866) 430-4600
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Frequently
Asked Questions (F.A.Q.)
It's
done every day. (What
is a private mortgage?)
A private mortgage is created when an individual sells to another
private individual and the seller holds a mortgage for the buyer.
This type of financing is commonly referred to as a carryback or
private mortgage. Mortgage, deed of trust, land contract, contract
for deed, and note are all terms used when referring to a private/carryback
mortgage. A private mortgage is a quick, easy way to sell or acquire
property without involving a Bank or other financial institution.
There are numerous reasons why a buyer and seller
would create a private mortgage.
- The
expediency of a quick closing can impact both the seller and buyer.
- The
strict guidelines of conventional institutions (Banks) are often
very prohibitive on secondary homes, rental or investment property,
commercial property, manufactured homes, self-employment income,
debt ratio and old credit problems.
- It
is a great investment for the seller. He is secured by value of
property he is familiar with, and the rate of return for his money
is typically stronger than can be gained through investments on
the open market.
Why
are these "private mortgages" sold:
The most common reason why these private mortgages are later sold
by the mortgage holder is an unanticipated need for a lump sum of
money: medical, retirement, education cost, vacation, to purchase
a new home, or to regain capital in order to make another business
investment.
Private mortgages fulfill the financial needs and desires
of the general public.
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