carryback financing


A type of funding in which a seller agrees to hold back a note for a specified portion of the sales price. For example, a buyer with no down payment funds available may arrange for 80 percent financing from a primary lender, with the seller offering to loan him the other 20 percent as carryback financing. The carryback financing in this case is the junior or secondary lien.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
carryback carryforward