Creative financing is nothing new when it comes to real estate. Owners throughout the years have been creative in helping buyers purchase their homes. One of the more common ways to buy a home beyond the traditional mortgage is the "Seller Carry Back." The seller carry back is a method used by owners of properties that have a large amount of equity in the home. Often times, these sellers own the property free and clear and have the flexibility to finance the purchase without the buyer having to go through traditional financing. This benefits both parties and helps them complete the real estate transaction. First, the owner is able to sell his home. A lot of times "hard to sell" and/or unique properties take a lot of time and patience to sell in a down market. In order to facilitate the sale, the owners offer to carry back a note. The actual amount that the owner will carry often times depends on the amount of equity the seller has in the home. The more equity the owner has the more he is able to lend to the buyer. Even if this seller has a small amount of equity he still posses to the ability to carry back the note. Often times the note will be handled as a 2nd trust deed behind a traditional first mortgage. Second, the seller carry back helps the buyer who has recently gone through a short sale and/or foreclosure where the credit has been damaged. Buyers with lower credit scores benefit by doing a seller carry back since most traditional lenders will not lend to borrowers with low credit ratings. It's important to keep in mind that all terms of the seller carry back including interest rates are negotiable. Working with an agent who has experience with seller carry back notes is crucial as these legal documents can be tricky to put together.