Thanks for the help. And thanks to all who made suggestions. The seller took back 78K on a 84K condo at 8.5%, interest only, 15 year balloon. I got all of the clauses in that you folks suggested, including this default clause and the clause that gives me right of first refusal on selling the paper to someone else.
Bud Branstetter posted this a couple of weeks back regarding clauses a buyer should try to get in a private mortgage:
“The note and mortgage shall provide for a thirty day grace period in the event of default, and any reason for default may be cured during that period,”
I think I understand the first part (you can be thirty days late, no penalty) but what does "any reason for the default may be cured’ mean?