Just took a look - would be interesting to see a situation where this was executed.

With a healthy track record investors would trust that you will execute this deal successfully, as you had done in the past.Absent that track record, you are relying on your relationships to overcome the "trust factor".  

He may have ment 1 of 2 things ..1)  The house was Foreclosed on and sold at Court House Foreclosure Auction2) The Short Sale lender required the property be sold on an auction site as a Short Sale.Either way it sounds like you didn't have an executed contract and/or have been out of the loop.

You would be getting a HELOC to free up capital to execute on the next deal, so why not just keep that capital free in your own account so you don't have to take out a HELOC and pay the bank interest.  

Carrie, Texas has such restrictive requirements for installment sales (CFDs) that they aren't done, other states are following the foreclosure requirements, new lending rules are also in place, issues of deeds being executed simultaneously are seen as cancelling out each other as deeds may be effective when executed rather than perfected by public notice.

The Buyer at some point subsequent to the execution of the A-B Contract sells their interest in said contract to a third party.    

Enough said, it's an error and no one needs to be executed.

Here are the figures:Between owner and me: $120,455 - Purchase Price-   10,000 - Down $110,455 - Remaining Between tenants and me: $160,000 - Purchase Price    15,000 - Down -     3,600 - $100 credit for 36-month$141,400 Expected Proceeds: $141,400 - 110,455 $ 30,945 + 13,950 - $387.50 x 36 month $ 44,895 - Net profit if option executed at end of 3 years

It may differ by state but when I've done seller financed deals in California and Arizona, once I'm in contract and ready to execute the deal, the title company handles 100% of the title and note recording/execution.

I always notice things like sale price, value of the property and how stupid we must assume a seller is, that is where I should have put my boots on.When it got to the 5 elements of the note, seems we hit one, the sale price (which would be the loan amount at 100% otherwise it isn't in the note) but then went on a rant missing other elements, actually there are legal aspects and interest is not necessarily stated but must be computed for some types of transactions.Seems a comment was made that a seller signs the note, so we aren't even speaking to what actually goes on, lenders don't execute notes, the buyer is the maker of the loan.You'll also have issues of presenting terms, doing so means you carry the liability of what you presented to Harry Homeowner;Seems there` was the mention of putting in a occupant buyer under a lease option, that was another strategy, but make sure you aren't financing that!