Creating a first position note on a free and clear property

[Mike Cartmell]

First off, please excuse my ignorance on this matter and thanks in advance.

I have come across a property with a tax lien on it where the owner would like to redeem. He has recently been through a bankruptcy and has horrible credit so he cannot get a loan to cover the lien.

The property is worth around $200k free and clear and the total lien is approximately $5,000. I have attempted to purchase the property but he wants to stay in the house and will not consider a lease back. He really just wants a loan and is open to using the property as collateral.

1. Is this a good candidate for creating a first position note?

2. I have found a copy of our county's standard Deed of Trust form, is this the correct form to use?

Thanks again!

[Adrian Tilley]

@Mike Cartmell

I will just chime in to agree with the above posters...do NOT attempt to do this on your own. Way to many ways to screw it up. Get a QUALIFIED attorney. Good luck.