Seller Financing Promissory Note and Deed of Trust?

Question

Hello,

I'm currently in the process of negotiating a deal with a seller using seller financing (in Texas). However, I have never structured a deal that did not involve a hard money or conventional lending. Can anyone please advise how would go about obtaining a template Promissory Note and Deed of Trust to close on these types of deals or at least point me in the right direction? I would really appreciate the help.

Thanks!

Greg

Steve Vaughan · Answer

Here I open escrow at a title co.  They have attorney's they use to draft these docs that do it all the time.  The extra cost to get it done right is usually only about $300.

Then I use a contract servicing dept at a local bank.  They hold all original docs, electronically take my payment and get to the seller, do the amort schedule and annual interest reporting.  Maybe a local bank does that in your area.  Your title co should know.

Good luck @Greg Shyne.  Done right, seller financing can be amazing!

Randy Rodenhouse · Answer

Get a PSA signed by both parties spelling out the price, amount down and terms of the seller finance note and then get a title company to draft up the note and deed of trust and go to closing.

Greg Shyne · Answer

Thank you very much! I'll definitely look into that. I think it would definitely be worth the extra cost to make sure it's done right.