I brought a SFH in Toledo, and I want to do seller financing to a renter there. Do you use RE attorney to write up the private loan or do you use private loan originator? Thanks, Julia Tse
Use a RMLO and a title company.
I went to that link Brian gave.......
I'm probably more sensitive to marketing hype than most, but when an originators suggests selling your property at a higher price, I get nervous.
There are also RMLOs out there free lancing thinking they can underwrite a seller financed deal, my bet is, 1st, they may not be compliant, which will really mess up a note holder and secondly, if they just came from the conventional world, they will lack experience in underwriting with crystal ball. The two together is a bad combination.
Finding a RMLO/Brokerage needs some due diligence beyond a web site. Check license status, experience as to years of service for the brokerage, complaints filed, administrative actions by licensing authorities, or do they have servicing available? What is the financial status of that brokerage, reserves, can they buy a note back that was originated out of compliance, their error or omission? Does their E&O cover privately funded or seller financed notes? Does their bond? Insurance for lenders, brokers and originators often cover industry standards seen in conventional aspects of lending, seller financing is another animal as the lender is unregulated.
Check with your attorney too, brokers can not practice law and draft custom tailored notes if such are necessary, unless it's their note as the lender. Have any note reviewed before you use it.
A nice web site, great marketing skills, claims of experience and expertise just don't cut it anymore. :)
Wow, thank you for the advisory!
I dont know of a better RMLO in the country, Bill.
Great resources on Dodd Frank there too.
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