When you said in your initial post that you had a question on seller financing, I thought you meant that the Agreement of Sale stipulated that it would be seller financed.
Nevertheless, you also asked the following questions in your post,
1. Could the seller then step in and using the same contract offer a 30 year conventional loan at the x.y% rate, effectively forcing the buyer to fulfill the contract?
Although in the usual and customary agreements of sale, the seller does not offer financing because he usually needs the money to purchase another home, but in some situations where the seller does not need the money for another purchase, or does not want to pay a capital gains tax immediately, if he is selling the home at a profit, he can offer seller financing of the balance of the purchase price;
2. Does the seller need to be licensed in order to offer such a mortgage?
If the seller is only financing the sale of property he owns, he does not need a special license to offer financing. Even if the seller was selling 10 properties he owns, he can finance all 10 of them without a license because he is the owner;
3. I was under the impression that seller financing was a different form (land contract) or an addendum attached when first negotiated. Mind you the buyer has not applied/negotiated with the seller for this "conventioanl loan."
No special form is required for seller financing. A land contract is one where the seller retains title to the property until the purchase price is paid in full, at which time the seller will execute a deed to the buyer. However, the seller is not required to enter into a land contract; he can choose to execute a deed and take back a mortgage on the property as security for the repayment of the purchase money loan;
4. Finally can the seller even offer a conventional loan?
There is nothing magical about a conventional loan, it is simply a loan which is payable in equal, consecutive, monthly installments of principal and interest over a set period of time. It can be offered by a bank, lending institution, or a seller,
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