What form do I use for a Seller Finance offer

[Bryan Sandera]

Hello,

I want to offer my neighbor to buy his house using seller financing.  The needs a lot of work!  I plan to offer 12 months financing with a balloon payment after 12 months when I obtain a conventional mortgage loan.  What real estate form is best used for this in Grand Rapids?  I also plan to use a title company.  Do I ask them?  Thanks for your input!!

[Account Closed]

Hi Bryan, 

I would definitely ask your neighbor first, to see if he would entertain financing the purchase for you.  Then, if yes, you could hash out the terms with him (interest rate, length of loan, down payment, if any, etc.), and write up a contract.

To write it up, just add "seller will finance (state the terms you agreed on)" to the "special stipulations" section of the contract.  Then let the title company or attorney (depending on your state) write up the actual note.  Also get the title company to set up payments through a loan servicing company.  

If you're new to writing up contracts, just write everything you both agree to on a piece of paper, and give it to the title company.

Good luck!!!