Escrow-Title Company for Hard Money Loan in Raleig

[Barry H.]

Hello BP contributors. I have ventured into the world of Hard Money Lending (HML) in the past couple years and have only done 1st Position DOTs on residential real estate in AZ and MO.

I have come across an "opportunity" to lend 2nd position rehab money ($20K) to a Borrower who has owned a SFH as a rental for many years in suburban Raleigh NC. The Borrower wants to finally sell the property and has a contractor(s) ready to start work. 1st position is about 65% of the value currently. If I lend (2nd position), I will be exposed to about 85% of market value (presuming the Borrower runs off with my $20K AND I pay off 1st position - which I have the ability to do). I wish the spreads were better, but if they were, I am sure the Borrower could just get a conventional HELOC and not deal with me.

OK - sorry for going down the rabbit hole too far. :-( The real purpose of my inquiry pertains to using an out-of-state (for me) Escrow/Title (ET) company and what to expect from them. More specifically, I know HML deals are common for ET Cos, and in my other 1st position DOT deals, I have relied on the Borrower (a trusted Borrower) to handle those details. In this case, I need to be driving the bus. Soooo.....is it realistic for me to expect an ET Co of my choosing to draw up a standard Prom Note and DOT which will reasonably and legally protect my interests, including assignment of rents language, assigning a Trustee (which would presumably be the same Esc/Title Co) and getting everything properly recorded? This is a small deal and it is not cost-effective for the Borrower or myself to hire an attorney to draw everything up. If that is the only real option, I am fine passing on the deal.

If anyone can answer this question(s) with some clarity - SPECIFICALLY as relating to a recommended ET Co in the Raleigh NC area - I am greatly appreciative.  As a follow up question - what is a reasonable ET FEE for this transaction and also a reasonable Title Policy cost?  The Borrower will have to bear those costs, but we both want it to be reasonable.  

I thank anyone/everyone in advance for their guidance.