How does seller finance work?

[Alvaro Rodriguez]

I have a house under contract, the bank was giving me trouble so the seller and I agreed to seller finance. We have agreed to a price, interest rate, downpayment, and balloon payment terms, and would be to 30 years. 

Now that all the terms are agreed to, what are the next steps? who can prepare the paperwork for us? do I go to a title company? the seller and I have our own agents because we originally tried the conventional way, and we still want our agents to get paid. 

any guidance on the next steps and how the process works is greatly appreciated.

[Owen Dashner]

Have an attorney draw up the agreement. Depending on your state, you will likely need either a Deed of Trust or a mortgage, a promissory note, and potentially a personal guaranty (if the seller requires it).  Once the docs are drawn up, you get them signed and notarized and have either the attorney or title company record the financing instruments with the county recorder.