What type of mortgage can a seller/vendor of property hold?

The seller/vendor of a property can hold a purchase money mortgage, which is a specific type of financing that allows the buyer to borrow money directly from the seller to purchase the property. This arrangement can facilitate transactions, especially when buyers may struggle to secure traditional financing or when sellers wish to make their property more marketable.

In a purchase money mortgage, the seller extends credit to the buyer, effectively lending them the funds needed to complete the purchase. The key characteristic of this type of mortgage is that it is created simultaneously with the property sale, meaning the mortgage documents are executed at the same time the buyer takes possession of the property. This can be particularly advantageous in situations where traditional lending options are limited.

Other mortgage types listed in the choices, such as a conventional mortgage or a lien mortgage, are more focused on traditional lending institutions and do not typically involve sellers directly in the financing process. Short-term loan mortgages also do not directly relate to the financing structure that a seller would hold when selling a property. Thus, a purchase money mortgage is the appropriate choice for sellers looking to offer financing directly to buyers.