Posted by John Behle on March 03, 2000 at 12:58:43:
You may get more responses over on newsgroup 1 at: http://www.creonline.com/wwwboard/index.html
Using a note for downpayment can take several forms. The most common is that the seller “takes back” a second in the form of “Seller Financing”. This note is secured by the property. It’s fine to do as long as all parties know what is happening (especially any new lender on a first loan).
You can also give a note that is secured by another property, some form of personal property or unsecured. Another example is trading or using as collateral an existing note - usually bought at a discount.
Title companies, Escrow companies or attorneys can easily set up “seller financing” for little charge. What form and format you use depends on the state.
For more information, read the success stories and articles at this site and pick up Robert Allen’s “Nothing Down” book or Richard Allen’s “How to Write a Nothing Down Offer.”