Can anyone give me some idea of how I would do owner financing? I have NO idea what to do.
A note payable and mortgage are what is needed to owner finance. The note specifies the terms of the loan; interest, repayment terms, place of payment, etc The mortgage secures the real property until the note is paid in full. The documents are recorded in the land records of the city/county of the property.
When the note is paid in full a release of mortgage has to be created to clear the title. That also has to be recorded.
Attorney assistance is highly recommended.
Thanks a MILLION.
Attorney assistance is highly recommended.
I second. There have been some interference with this process in Texas. The state legislature doesn’t like us being able to do owner financing so they put a lot of barriers up. Make sure you consult a lawyer.
Barriers like what, for instance…
There is legisltaion that prohibits certian owner financed real estate transactions most probably lease option type deals.
If you know the circumstances under which you intend to owner finance, post it on the board here and you will probably get some good feedback. That will be much more efficient than listing all the barriers.
I am not interested in owner financing, was just curious as to how they were trying to interfere with the process.
Sorry for the delay, I was on vacation for Easter. But in Texas the legislature has called Lease options, owner finance, and contract for deeds “executory contracts”. That makes it a SALE which triggers the tax liability and also effectively kills your ability to do a 1031 exchange. That is why placing the deed into a trust does not trigger the sale and allows you as controlling trustee to still maintain control of the property.