Celebrating 10 years! 2007-2017

RE question

Got a client that wants to sell 360k house no money down and cantimaginenocountry05/04/17
None of this sounds right. This is not commercial, right? skankhunt4205/04/17
But yeah, just draft a promissory note detailing the terms a skankhunt4205/04/17
Because they need a house and they can't get a traditional l retard05/04/17
My guy may not want to allow a refi. Is that even legal? cantimaginenocountry05/04/17
He can include a prepayment penalty. What is the state law? retard05/04/17
Sounds like a hard money loan. Regardless, I don't have isthisit05/04/17
Mortgage and Rider Personal guarantee Note retard05/04/17
OP this. Plus check poster's reply below. isthisit05/04/17
I imagine you can steal most of the language for the mortgag 3lol05/04/17
Have someone who know what they are doing handle this. Th ruralattorney05/04/17
This. In some states if a private housing loan fails to perf retard05/04/17
To second Retard. If this is a residential property stay far wtretire05/08/17
cantimaginenocountry (May 4, 2017 - 12:33 pm)

Got a client that wants to sell 360k house no money down and he will provide the 15 yr. mortgage at 7%.

Can anyone provide some guidance with this? Drafting sale K is easy. What about the mortgage docs? A mortgagor send you a statement every month with massive penalties if you are more than 2 weeks late on one payment.

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skankhunt42 (May 4, 2017 - 1:47 pm)

None of this sounds right. This is not commercial, right? Why would someone want to take out a private mortgage at 7%?

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skankhunt42 (May 4, 2017 - 1:51 pm)

But yeah, just draft a promissory note detailing the terms and default rate and slap on a private mortgage. Shouldn't be too complicated.

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retard (May 4, 2017 - 2:41 pm)

Because they need a house and they can't get a traditional loan. These things are usually refinanced in like 2 years, thus the ones I've done have been interest only short term notes.

Just use forms and plug in the numbers.

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cantimaginenocountry (May 4, 2017 - 3:09 pm)

My guy may not want to allow a refi. Is that even legal?

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retard (May 4, 2017 - 3:10 pm)

He can include a prepayment penalty. What is the state law?

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isthisit (May 4, 2017 - 3:25 pm)

Sounds like a hard money loan.

Regardless, I don't have any forms for you but I think you just need a promissory note and then you draft a separate document with mortgage terms.

Check your state law for the refinance stuff.

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retard (May 4, 2017 - 4:32 pm)

Mortgage and Rider
Personal guarantee
Note

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isthisit (May 4, 2017 - 5:24 pm)

OP this. Plus check poster's reply below.

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3lol (May 4, 2017 - 4:25 pm)

I imagine you can steal most of the language for the mortgage docs from Fanny and Freddie

http://www.freddiemac.com/uniform/unifsecurity.html

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ruralattorney (May 4, 2017 - 4:52 pm)

Have someone who know what they are doing handle this.

Then you will have good docs for the next time.

Don't fool with this. Seriously.

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retard (May 4, 2017 - 5:13 pm)

This. In some states if a private housing loan fails to perfectly comply with the relevant statute there can be YUUGE consequences.

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wtretire (May 8, 2017 - 7:37 pm)

To second Retard. If this is a residential property stay far away. There are a ton if disclosures and very specific documentation requirements in many states. If you do not meet the requirements, good luck trying to foreclose when the mortgage hasn't been paid. If it's an investment property things are much simpler. You will want a note, mortgage, guarantee, assignment of leases and rents, etc. for free standard forms hit up the website of any decent size title agent, many of the larger title agents provide free forms that meet recording requirments for specific states.

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