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You do not want to do your own closings. You should always close at a title company or escrow office and let them create the documents for buying or selling with seller financing.
I think there are some contracts to buy or sell with seller financing in the FILE VAULT. I will verify that today. And add some if they are not there.
other than the contract to buy or contract to sell, you need to let the title company prepare the note, deed of trust, etc. You can tell the title company what clauses you do or do not want in their forms and make modifications to their forms but let them prepare them.
On the BUY side, make sure that the note is non-recourse.. meaning you have no personal liability for the payments. The house is the only collateral.There are several purchase contracts in the File Vault. some contains language to buy subject to an existing mortgage. Some do not. You can mix and match the contracts to come up with one that is just right for each deal.
Keep in mind that you should never use the same form or contract over and over again. Real estate is not a cookie cutter business. You need custom forms and contracts for each deal.
Today, I’m adding a new section in the File Vault for specific SubjectTo/Seller Finance Wrap language and documents.yOU ASKED FOR IT… YOU GET IT AT CASHFLOWDEPOT!
I just added a 90 page document package with all documents, forms, warranty deeds, notes, deeds of trust, cya letters, etc etc etc that are needed to BUY or SELL Subject to a Mortgage with a Seller Finance Wrap.
NOTE — that the warranty deed, deed of trust, and notes should all be prepared by a title company. But you can see the sample language you should expect. IMPORTANT — WHEN BUYING YOUR NOTE SHOULD BE NON-RECOURSE WITH THE PROPERTY AS THE SOLE SECURITY FOR THE NOTE. YOU SHOULD NOT HAVE ANY PERSONAL LIABILITY.
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