Two of the notes have already matured and I did not receive the balloon payment as the security instrument dictated.

The common fix is to have the lender re-execute and notarize a replacement mortgage, often paired with a lost instrument affidavit, then record that instead.

Hey Zach — even though this is an older post, here’s a simple way to think about owner-financing a down payment:Legally, you’ll need a promissory note for the down payment and a security instrument (mortgage or deed of trust) if the payment is significant.The structure can vary: sometimes the seller holds a second note for the down payment, sometimes it’s wrapped into the main loan.Always have these drafted or reviewed by a real estate attorney — it protects both you and the buyer.The key is making sure the payments, interest, and terms are clear so both sides are safe.Owner financing can be a great tool, but the details matter.

However, if you partner with the right one, they will be instrumental to your real estate growth. 

I'm about to graduate so I do have a general understanding of types of debt instruments, discount rates, and just about most financial terminology.  

My studies have allowed me to gain a strong understanding of traditional investment instruments, but have not exposed me to alternative investment opportunities such as real estate.

This deed instrument is submitted to the county recorders office for “filing”.  

I think you save money by using a good accounting program-no matter which one--because you have instrumentation to watch your income and expenses and because you're less likely to lose deductions.

Very thankful for the closing of this property and to have been instrumental in being a problem solver for the Seller and Buyer!

Technically, you would also probably need to sign a new mortgage/deed of trust (the actual security instrument...I didn't catch what state you are in).