Practical advice for seller (me) financing a land deal?

[David Jiang]

Hello, 

I am currently negotiating the sale of a piece of residential land to the neighbor next door and he's willing to pay 20% down while I provide seller financing for the remainder amortized over 5 years. I am getting a loan servicing company to set up payment collection.

I have never been on the lending side before. What are some of the practical considerations that I should consider in this type of a deal? I know this is a very broad question and in fact, I'm just looking for anything that comes to your mind that might help me avoid unforeseen risk or headache.

Worse case scenario, if the buyer defaults, what is the the foreclosure procedure like and how much should I budget for that? What are some of the more mundane implications like the impact on filing taxes? Who pays the property tax now that we both have equitable title? Once the loan is paid off, do I need to do anything or does title automatically transfer over to the buyer? etc...