Help creating a note for a friend loosing property to taxes

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Hey guys,

I have a friend of a friend who is desperate because he's about to lose his property because of unpaid taxes (2yrs of unpaid taxes, Texas). I would like to help him and maybe invest my cash in creating a note so he can pay his taxes and keep the house.

Some details: 

- He owns the property free and clear

- House is worth about $160,000.

- He owes about $15,000 in taxes to the county

I'm new to this and I wonder how to setup the note.. I was thinking loaning him the 15k and take the house as collateral. Is this a good idea or do you see any problems with this ? Seem too simple. 

I was thinking getting a lawyer to write up the note and make sure everything is kosher. Giving hime a rate between 16-18% with a monthly amount he'll be able to pay back.

Anything I should be careful about ?

Thanks for the help.

[Don Konipol]

Texas Homestead laws make any home equity loan not done under the specific guidelines of the home equity laws unenforceable as to the deed of trust.  Since the OP is not (1) licensed as a home equity lender in Texas and (2) as such unable to comply with the specific documentation and procedures required to comply with home equity lending he will find that if the borrower institutes a court action the court will deem that the deed of trust is invalid and the real property no longer secures the note.  So the lender will end up with an unsecured promissory note.