Holding A Note

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I sold several of my rental homes this year (that took months to close). I originaly agreed in the beggining to hold paper on 10% of the price and buyer got 90% financing.

He just gave me the morrtgage and promissory note drawn up by his lawyer and the mortgage is being filed in his County in FL., not the county where the property is located. Is this a problem?

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  • JohnMerchant6th August, 2004

    So you sold, the buyer got a new loan from 3d party lender for 90%, and you took a 2d mortgage loan for 10%...right?

    If so, then your mortgage definitely needs to be recorded in the county of the RE's location. You just need to take the original mtg up to your recorder, pay the few bucks recording fee and it's a done deal...and be sure and have the orig. mtg returned to you.

    The note itself isn't recorded, or recordable, as it has no notary public's acknowledgement form on it

    Don't worry about if or where the 1st lender's mtg is recorded...not a matter of concern to you if it's recorded or not.

    I'd never allow a borrower to draft his own note & mtg...if I'm carrying a note, it's gonna be done my way, my form, my terms, etc...and a lawyer works only for his client, who isn't you in this case.
    [addsig]

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