Purchase Money Mortgage


Also found in: Financial, Acronyms, Encyclopedia.

Purchase Money Mortgage

A security device entered into when the seller of property, as opposed to a bank or financial institution, advances a sum of money or credit to the purchaser in return for holding the mortgage on the property.

The seller of the property, rather than a lending institution, is the mortgagee. These mortgages are given concurrently with the conveyance of the land or the transfer of the items sold.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
Mentioned in ?
References in periodicals archive ?
1.357-1(c), B will be subject to Federal income tax on $600,000 of realized gain (i.e., all of the liabilities F assumed are treated as boot, including the otherwise-benign assumption of the purchase money mortgage note).
Contrary to popular belief, purchase money mortgages have generally not become commodities--they remain highly service sensitive.
* If the purchase money mortgage is junior to a bank loan, there's a risk that the buyer will default on the seller-financed loan but not on the senior loan, leaving the seller with little recourse.
If you are not one of the few credit unions or CUSOs that have the individuals on staff with the experience to develop a successful plan to capture your member's purchase money mortgage business, seek help or guidance to ensure you develop a team that really understands who constitutes the market you are going after, what channels to use to rollout the plan, when to market to the targeted segments, where your market is and how you intend to fully implement the plan.
* $1,100,000 purchase money mortgage for the acquisition of a 10,000 s/f single tenant office building located ha Kokomo, IN.
The seller provided a purchase money mortgage and Provident Bank provided a first mortgage.
* A $1,250,000 purchase money mortgage on a 25 unit, 6 story elevator building on the Upper East Side of Manhattan.
* A $l,250,000 purchase money mortgage on a 25 unit, 6 story elevator building on the Upper East Side of Manhattan.
The borrower had recently closed on the $18 million purchase with a purchase money mortgage, and now had the opportunity to refinance the PMM at a substantial discount, but only if the deal could be completed by year end.
* A purchase money mortgage in the amount of $566,250 on a multifamily apartment building located in The Bronx, NY.
* A purchase money mortgage in the amount of $945,000 on a multi-family apartment building located in Malden, Mass.
* A purchase money mortgage in the amount of $263,900 on a multifamily apartment building located in Fall River, Mass