A standard contingency with seller financing is that the seller gets to review the buyer's finances, just like a professional lender, and call the deal off if the buyer is a poor credit risk. Another contingency to include in the original contract is the option to negotiate a new mortgage in the event the buyer can't cover a balloon payment. The seller financing addendum outlines the terms at which the seller of the property agrees to loan the money to the buyer in order to purchase their property.The seller agrees to take either a first (1st) or second (2nd) mortgage on the property at an agreed upon interest rate with payments that are made either every month or in a balloon payment at the end of the term. If Seller fails to comply with this contract for any other reason, Seller will be in default and Buyer may either (a) enforce specific performance, seek such other relief as may be provided by law, or both, or (b) terminate this contract and receive the earnest money, thereby releasing both parties from this contract.