Seller Take Back
Definition - What does Seller Take Back mean?
Seller take back is when a seller of property (including a vehicle) gives a loan to a buyer to help the buyer finance a portion of the cost of the property. This in an alternative type of financing that buyers can get. Just like other loans, however, seller take back loans charge interest. So over time, if a buyer takes a loan from a seller, he or she will end up paying for more than just the price of the property. He or she will also have to pay interest.
Justipedia explains Seller Take Back
An example of seller take back would be a person selling his or her home who offers a $50,000.00 loan to the buyer to help him or her finance to the home. Most buyers prefer to get loans from banks. However, this is not always the case. The appeal of seller take back to sellers is that even though they don't get paid the full amount upfront, they get paid more over time due to interest.