Suppose a Buyer Agrees to Purchase a Tract of Land

Multiple Choice

Suppose a buyer agrees to purchase a tract of land for $40,000. The buyer is only able to obtain a mortgage for $32,000. Rather than let the deal fall through, the seller agrees to accept $4,000 in cash and a note from the buyer for the remaining $4,000. This type of transaction is commonly referred to as a:

A) conventional loan
B) home equity mortgage
C) purchase money mortgage
D) reverse mortgage