Creating a private mortgage without title company
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
Most Popular Reply
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!