What type of mortgage allows sellers to receive payments from a buyer while still making payments to the mortgagee?

A purchase money mortgage is a type of financing where the seller provides a loan to the buyer to purchase the property, allowing the seller to receive payments directly from the buyer. This arrangement typically occurs when the buyer cannot secure a traditional mortgage or when the buyer and seller negotiate terms that are beneficial to both parties.

In this scenario, the seller maintains their original mortgage obligations to the mortgagee while receiving payments from the buyer, often making it an attractive option for sellers who want to facilitate the sale and potentially earn interest on the loan. The structure of this type of mortgage provides flexibility for both the seller and buyer and can be part of creative financing solutions in real estate transactions.

Other types of mortgages, such as negative amortization, adjustable-rate, or fixed-rate mortgages, do not inherently include the provision where the seller can receive payments from the buyer while still making payments to their lender. Each of these other mortgage types has specific characteristics that don't apply to the situation described in the question.