Seller Financing Question

[mja2649]

When obtaining seller financing, what paperwork is required? Is there any difference if it is going to be a first or second mortgage? How do you go about properly recording this paperwork?

Thank you,

Mike

[dealmaker]

OK I CANNOT speak to how it's done in Georgia, for that you will need a GEORGIA ATTORNEY. The following is how it's done in TX, which is a Trust Deed state. There is no difference in the paperwork required for seller financing than there is for 3rd party financing. Although the contract used by Realtors has a seperate addendum for seller financing.

In TX to transfer a property you need a
Warranty Deed, this transfers the property from the seller to the buyer, and uses the words along the lines of; TEN DOLLARS AND OTHER CONSIDERATION and a REAL ESTATE LIEN NOTE IN THE AMOUNT OF XXXXXXX. The payment of said note is secured by a Vendor's Lien and further secured by a DEED OF TRUST OF XX DATE.........

The key documents are:
Warranty Deed, transfers title
Lien Note, specifies the indebtedness
Deed Of Trust, the buyer places his rights with the Trustee until the debt is discharged.
HUD-1

In TX it's the County Clerk who records documents. We just record the Deed and Warranty Need.

All of these papers have LEGAL, FINANCIAL and ETHICAL considerations. It's not amateur night. Self help LAW is like self help DENTISTRY, you may save a few bucks, but you may not like the pain and suffering. IIRC the last time a lawyer did one for me he charged about $250. When I do the documents I charge my buyers about $300. See, I don't follow my own advice.

Good luck.

dealmaker

[loans2investors]

Oh this is really easy to answer

You will need to get a attorney to help you I Know a great one in GA and he creates the HUD they Note, security deed and the warrenty deed for you and you just set the term of the note and they will draw it out for you and they will record it for you.

Trust me you do not want to just do this at what I call a TABLE FUNDING that is at a kitchen table LOL .

Get the attorney involved it is well worth the minimal cost.

As far as a 2nd mortgage or a first mortgage all that means is who was recorded first or second and yes the note and security deeds are the same for both.

[blessedx100]

how do you go about in receiveing lis pendens, pre-foreclosures have some experince but not quiet enough, can you do subject to the existing loan, if so how could that be done