what does "owner will carry note" when selling a property?

[ron197192064]

Are there any benefits to seller/buyer? or anything that the seller(current owner) needs to worry about when carrying the note? is there an advantage for anyone?
I own two houses, both being rented out. I am thinking of selling, but can't get what I paid for them. if I try to sell by carrying note, is it a 30 payment plan? or how many payments until they pay it off? do I continue to make mortgage payments to the lender I am making payments to now?

[L.K. Duh]

For the seller, it's like a reverse mortgage--even better, because if the buyer defaults, the seller forecloses and keeps all the house! Also, it cuts out the payments to mortgage brokers, lenders, and perhaps the real estate brokers, if it was all handled by the seller.

The seller could structure the loan so that interest rates are tied to beat inflation.

Of course, it means you are dealing with one buyer for 30 years, making sure that sucker pays you each and every month.

Both parties should retain a real estate lawyer to execute the sales contract, I would assume.

OH, so you still owe the mortgage? That has to be taken care of first, because that bank holds the note! How can you hold the note if the bank already has it?

What if you try a "rent to own" approach, where your renter's payments apply toward purchase ONLY after you have paid off your mortgage and are free and clear to sell the place. That way, it is a rental deal until you can achieve full ownership. Also, you could structure the contract so that the actual sale price is not determined until you achieve ownership.