Seller Financing - Please let me know what you think.

[Mark Schmidt]

We have a paid for rental home that we would like to sell to our renters. We are interested in doing it with seller financing. We know and trust the family and have no concern about getting paid, but we know there are risks and would foreclose if necessary. We are considering amortizing it over 30 years, but with a balloon payment due in 10. We would have a promissory note drawn up, but I am not sure what else I am missing. Can we do it without going through escrow? How do you choose the interest rate? We are looking for your feedback. Thanks.