What role does a borrower typically have in a seller financing scenario?

In a seller financing scenario, the borrower typically acts as the mortgagee. This arrangement occurs when the seller acts as the lender, allowing the borrower to pay for the property over time rather than obtaining a loan from a traditional third-party lender. The seller essentially extends a loan to the buyer, and in this context, the borrower holds the status of the mortgagee. The mortgagee is the entity that receives payments from the borrower, just as a bank would in a conventional loan situation.

In a seller financing agreement, the seller retains a security interest in the property until the loan is fully paid off, meaning they have the ability to foreclose if the borrower defaults. This relationship is crucial to understanding the dynamics of seller financing and the responsibilities and rights of the borrower within that framework.

The other options refer to different roles that are more typical in traditional financing arrangements or do not accurately describe the borrower's function in seller financing. For instance, the term "vendor" usually applies to the seller, while "beneficiary" is associated with a trust deed context, and "agent" typically refers to someone representing another party in a real estate transaction. Understanding the specific roles in seller financing can help clarify how transactions are structured and the implications for both the buyer and