Seller Financing?

Can someone explain what this is exactly? What the pro's & con's?

very simply the seller holds all or some part of the mortgage, so the buyer doesn't have to get a mortgage from a bank. This might be useful if the property has some issue that won't let a bank loan money on the property, or the seller is in a financial situation where he can get a better return than,paying income tax tax on all the profit, then putting the remainder in a low interest savings accouint.

Seller financing means that the seller of a property is willing to lend all or part of the purchase price to the buyer. For example, a seller may wish to sell his home for $200,000 and is interested in earning interest better than is available in a savings account or CD. a buyer offers to pay $25,000 for the home and finance the balance with a 7% mortgage. The seller takes the mortgage and it is secured by the home, so if they buyer does not pay, the seller can get the home back in a foreclosure.

Sellers sometimes take a second mortgage because the buyer cannot pay the full amount beyond what a bank will lend on a first mortgage. This may be a better choice than not selling the property. Second mortgages are more risky and therefore yield a higher interest rate, which may be attractive to the seller.