Seller financing is a sale where the seller acts as the lender, letting the buyer make payments directly to them over time instead of borrowing from a bank. The seller holds a note and usually a deed of trust securing it, and can foreclose using the same process a bank would if the buyer stops paying. It can help a house sell that a bank would not finance.
Why it matters
Carrying the note yourself can raise the total you collect, but it also means taking on the risk of the buyer defaulting.
General information, not legal or tax advice.