Creating your own mortgage questions? - Posted by Robin

Real Estate Investing Real Estate Financing
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Posted by Robin on September 11, 2003 at 14:05:01:

Good suggestion.

Thanks Bill

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Creating your own mortgage questions? - Posted by Robin

Posted by Robin on September 08, 2003 at 14:32:36:

I have read J.P. Vaughan’s article on How to creat your own mortgage. I think this is a very interesting concept. I love paper work so this is right up my alley. I do have a fee questions though…

  1. What is a mortgage created in escrow and how does it get in escrow?

  2. How do you create a mortgage on something you don’t own yet?

  3. How do you write the sales contract on the property you are trying to purchase by creating your own mortgage and at what point do you give the seller a contract(after you write the mortgage and have a buyer for it or before)?

  4. How does this work with HUD property and is the seller ever aware that you are creating a mortgage to sell it in order to have the money to purchase their property?

  5. After you creat the mortgage (on paper)  what next...do you try to sell it, record it or what?

Sorry for so many questions but this sounds like something I can’t wait to do. I am very excited about this. Although I am not a newbie to RE I am a newbie to this concept so please explain it to me that way. By the way the article is awsome.
Thank you to all who can lend me a hand here!
Robin

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Re: Creating your own mortgage questions? - Posted by Terry Vaughan

Posted by Terry Vaughan on September 09, 2003 at 12:08:24:

Robin:

Here is a link you might find interesting:

http://www.creonline.com/success-stories/ss-234.html

This investor used the very idea you are talking about to make over $1,000,000.00 on one deal!

His discussion gives you more of the details and steps involved.

This concept if more common today as a “simultaneous closing” for a “purchase-money” mortgage or note.

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Re: Creating your own mortgage questions? - Posted by SunStar Mortgage

Posted by SunStar Mortgage on September 08, 2003 at 23:45:38:

You may talk to a real estate title company closer about escrow questions and they can help with that. the difficulty is not to create a mortgage as many software can do the paper, the problem is to find some one with money to take that mortgage at your note terms.

That is what the banks do. They have money, they give it to you and record the mortgage with the county on the property to ensure that the note is paid in terms.

Now, if you have money and you are lending it to someone, then you will do the same what banks do; lend money get a note per your terms agreed with borrower and then record a mortgage against the property as a collateral.

Now you can create your own mortgage but without money and a note, it really does not mean much.

Shambhu Nath

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Terry, how do you find investors to buy the note - Posted by Arlene

Posted by Arlene on September 11, 2003 at 22:10:30:

nt

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Re: Creating your own mortgage questions? - Posted by Robin

Posted by Robin on September 09, 2003 at 12:23:42:

Thanks Terry for the link, however, after reading through the story I still have the same questions. ;|

Puzzled I guess!

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Re: Find investors to buy the note? - Posted by Terry Vaughan

Posted by Terry Vaughan on September 12, 2003 at 12:00:13:

Bill makes a great suggestion:

Go to the Cash Flow Forum and plug in the words, “find buyers”.

I found 236 hits. Then try variations on that and you will find many many ideas.

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Re: Creating your own mortgage questions? - Posted by Bill_AL

Posted by Bill_AL on September 09, 2003 at 13:46:57:

Go to the cash flow forum and seek help on these questions.
Bill