In a Purchase Money Mortgage, to whom is the mortgage typically repaid?

In a Purchase Money Mortgage, the mortgage is typically repaid to the seller. This type of mortgage occurs when the seller provides financing to the buyer to purchase the property, allowing the buyer to make payments directly to the seller rather than through a traditional lender, such as a bank. This arrangement can be beneficial for both parties; the seller can facilitate the sale of the property and may earn interest on the loan, while the buyer might be able to purchase the property with more flexible terms than those offered by banks or financial institutions.

Other options do not apply in this scenario: the bank is involved primarily in traditional loans rather than seller financing; the listing agent is involved in representing the seller but does not receive payments from the buyer’s loan; and the buyer's attorney typically handles legal transactions and documentation rather than receiving mortgage payments. This clarifies the relationship and structure of a Purchase Money Mortgage.