How do I secure a loan to a friend with a deed of trust?
Answers:
You can record a deed of trust as a lien on the property. All you need is the form, which you can find at some stationery stores. Fill in the blanks, be sure to include the legal description, have your friend sign it, and record it with the county. When the property is sold, your lien will appear in the title search and escrow will contact you for a payoff amount. Be prepared, though; if the property goes into foreclosure again, your lien could be foreclosed out.
I would just put a contract together stating that he would pay you x.xx amount of dollars once the home is sold. have it notarized. that would hold up in court if something happened to go wrong. or you can write up a promisorry note stating he would pay you in monthly payments until the home is sold and pay the rest once he sells. but i would get everything notarized. you can usually have that done at a bank for a small fee.
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