Owner Financing,drawing up the Promissorry Note,Please help!?

Question

I am the Buyer buying a property from an owner willing to finance for me,because of his eagerness to sell and my lack of funding.

Does this work as follows:The property is worth $200,000,and is payed for free and clear.The owner must refinance his home,and pull out his money,he then acts as a bank/or mortgage keeper and signs a quit claim deed to me,and a Promissory note stating our terms,his interest rate the amount I own him.(does this also include what happens if i default on the payments?) and at what date the payments are due?.

Also after it is signed and agreed to by both parties,i understand this must be recored with the county.How though,exactly does my name get put on the deed of the property? and does the owner get to keep the title,or perhaps a lien on the property? please explain if you know how this works,and thank you for your help :)

Answer 1

O dude....this guy is taking you for a ride.  I would be very careful with this deal.  I would explain why, but it would take about 2 hours.

Answer 2

If you are even remotely serious about this deal you should either a) hire an attorney to go over the paperwork; b) hire a real estate agent as your buyers agent -it costs you nothing- they can probably work out a deal with the seller to just pay for the transaction cost.