Mortgage Confidential: What You Need to Know That Your Lender Won\'t Tell You

The credit crunch and tough times in the mortgage market are creating new profit opportunities in a highly-specialized real estate investment niche: Buying seller “carryback” mortgage notes.

Carrybacks, also known as “seller takebacks,” are essentially replacements for standard mortgage financing, and become popular whenever banks tighten down credit standards sharply.

For example, say you’re selling a house that you own free and clear, or that has only a small amount of debt on it. Your buyers have downpayment money and solid incomes, but they can’t quite qualify for a conventional loan.

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