what is vendor take back mortgage?

 lot of people are unfamiliar with what a vendor take back mortgages so what a vendor take back mortgage is is it allows the seller of a home to lend money to the buyer for the purchase of the subject property so the buyer is required to make regular payments to the seller as they would do typically with like a bank and the interest rate is set by the seller and it's agreed upon with the buyer generally at a higher interest rate in other words if you are a seller that has a very strong equity position in your home you can use that equity to give the buyer alone potentially if for instance maybe you're selling your home for a million dollars and the buyer is only pre-approved for a mortgage of $800,000 you can use $200,000 of equity and give them a loan right and charge a higher interest rate so how this can benefit a seller itself is number one you're usually able to sell your home faster number two you can generate extra income from the interest and number three you can reduce the amount of taxes on capital gains and just to give you an idea in terms of how the offer is structured right the amount will be there the interest rate as well as the schedule so I recently sold a property in Stovall on 9th line and we structured it in there the seller was willing to give a vendor take back mortgage and we wrote up in the offer that the seller agrees to take back a second mortgage in the amount of $200,000 a baring interest rate at 6% per annum that's interest monthly payment only and to run for the term of two years from the date of the completion of the transaction of which the buyer shall have the right to pay what is vendor take back mortgage?/what-is-vendor-take-back-  mortgage