Owner Financing is the oldest form of lending that there is.  It existed before banks and traditional mortgage lenders began the practice of lending.  It is for this reason that it is the form of lending that is known least about.  I have written about the importance of the ORIGINAL promissory note and the documents that go with and I have written about the importance of Payor Co-Operation, this article is about a note holder who employed an attorney who didn’t know what he was doing and it cost the note holder MONEY.

Creating a Deed of Trust and a Real Estate Lien Note is not calculus, but there are certain formats that need to be taken into consideration.   When you buy and sell mortgage notes on a daily basis you will see all different type of notes; notes with a term of a week, 0 interest rate, various sorts of balloons even documents and titles that are unusual, or a note where the preparer forgot to include the interest rate. [Read more...]