Seller financing using a Mortgage

[Jim Roach]

When you use seller financing who creates the MORTGAGE/Deed of Trust and the PROMISSORY NOTE? What I mean is the actual paperwork.

[Mitch Messer]

Hi @Jim Roach. The seller is technically responsible for creating the note and the mortgage ( or security deed) documents, but as a practical matter the closing entity can often be enlisted to provide templates and necessary language to protect the seller's interests.

In Georgia, where we close with attorneys, it's pretty straightforward to obtain a boiler-plate security deed that gives you most of what you need, legally. You'll probably want to spend a bit more time customizing any basic note agreement by adding clauses as necessary for items such as a pre-payment penalty, due-on-sale clause, late fee, etc., as needed.