Seller Financing Contract - HELP!

[Chiquita Carter- Layne]

Hi REI Family.

I am VERY new to the business and this is my first deal experience. I had a property under contract to assign but needed to cancel that contract after the 14 day contingency after my due diligence gave me more insight about the deal and the seller did not want to renegotiate the contract. However now the seller is interested in accepting seller financing. The place is great as a buy and hold rental but selling is slow in the area. So right now I want to proceed in this manner but need help with the type of note contract to use and once the note is signed how to proceed? I was also wondering how does the owner go about giving me the deed of trust? Can I use my standard sell and purchase contract and add the terms, etc? HELP! P.S. the home is in NJ. 

[Mike Hartzog]

NJ uses a mortgage rather than a deed of trust for the security instrument. If the owner is accepting a note and mortgage as part of the deal, the buyer executes the note and mortgage at closing and is responsible for making the payments to the seller going forward.   You would add the terms of the financing to the PSA (or addendum to it), including amount, interest rate, term, payment schedule, and late penalties, etc.  The title company used for closing would prepare these documents based on the details included in the PSA, and would take responsibility for recording the mortgage after closing.  

I would suggest calling around to find an attorney or title company that has experience handling a seller carry back deals. They may have an format or separate document for specifying owner finance terms.