Once the buyer and seller agree on terms, the buyer secures a traditional mortgage for the necessary amount. At closing, the title is transferred from the seller to the buyer. In return, the seller is given a promissory note for the amount owed. The buyer makes monthly payments to the seller until the loan is paid off. Often, a third party note servicer (such as NoteWorld) takes care of collecting these payments and interceding should the buyer begin to default.

See: The Seller Carry Back Mortgage