Creating a private mortgage without title company

[Carlos Gallegos]

I am in the process of lending a person money for renovating an owner occupied home.   The home was recently bought for $50,000 cash and is free and clear.

I am trying to create a note for $15,000.  I am wondering how hard it would be to create a mortgage for this note which in my opinion would reduce the risk .  Based on the low amount of the loan, the owners equity in the home, and the owner's recent closing I do not have any particular need for getting a lenders policy or going through a title company.  I would simply like to create the note and mortgage and  record the mortgage myself at the court house.  

I appreciate any feedback.

C. Gallegos     

[Darren Eady]

Bad, bad, bad, bad idea.  Would you like to hear some horror stories?  ALWAYS get a lender's policy of insurance.  There are bound to be issues with the property or the seller.

To answer your question, yes, you can create a mortgage on a property without title insurance . . . my question to you is "why would you?"  It would be like getting married without dating first.  You have NO idea what you're getting into!

Contact me through BP if I can be more helpful!