Owner financing just about disappeared in the last five years due to the ready supply of cash and credit on the open market. It is has regained popularity since the supply of loans has been greatly reduced.

Owner financing means that the buyer does not get a loan to buy the property from a bank. The typical transaction requires the buyer to pay 10% or more down payment. Then the buyer gets title to the property and the mortgage payments are made to the seller instead of to a bank.
These transactions can be written by the buyer and seller, or they can get an attorney to draft them. Some title and escrow companies handle these transactions and have standard forms that buyers and sellers can use. The escrow department receives the payment from the buyer each month and then pays it to the seller.

Here is an example of owner financing:
The seller has a lot that they want to sell for $100,000. The buyer pays $10,000 at closing and signs a mortgage for $90,000. The loan is to be paid in 15 years. They interest rate is 6%. The monthly payments are $759.47. The buyer pays this every month to the Title and Escrow Company. The Title and Escrow Company pays this to the seller. There is a service fee every month of a few dollars that the Title and Escrow Company keeps. When the mortgage is paid off, the mortgage is released.

Owner financing is most popular with vacant land, since banks are not as willing to lend on vacant land, and the risk of damage to the property is much less without a home on it.