When might a seller offer a purchase-money mortgage?

A seller might offer a purchase-money mortgage when market interest rates are high. In this scenario, buyers may have difficulty obtaining financing through traditional methods due to elevated interest rates, which could deter them from making a purchase. By offering a purchase-money mortgage, the seller provides an alternative financing option that allows the buyer to finance the property directly with the seller instead of through a conventional lender. This arrangement can be appealing to both parties: the buyer may benefit from potentially lower interest rates compared to what might be available in the market, while the seller attracts buyers who may otherwise be unable to secure financing.

A seller offering financing directly can offer terms that are more favorable to the buyer, making the property more marketable. This strategy can help close a sale that might not have happened otherwise in a high-interest environment, thus benefiting the seller financially.

The other scenarios do not typically lead to purchase-money mortgages. Buyers paying cash would not need a mortgage; purchasing in a different country may involve different legal complexities and financing avenues, and being out-of-state does not inherently necessitate a purchase-money mortgage.