Amortized Mortgage

Alternatively, seller financing can be structured as a standard amortized mortgage, often called a Purchase Money Mortgage (PMM). In this scenario, legal title does transfer to the buyer at closing, just like in a traditional sale. The buyer signs a promissory note and a mortgage document pledging the property as security for the debt to the seller. If the buyer stops making payments, the seller cannot simply evict them; the seller must go through the formal foreclosure process to recover the property, because the buyer legally owns it.