Mortgages And Notes

If A Mortgage Isn't In The Cards For You

Most people think of mortgages as loans from large financial institutions that are used to buy homes or other property. However, because today's tighter restrictions on bank loans have left a number of individuals unable to secure a mortgage from a bank, many are turning to private lenders for funding.

A private lender may be a family member or friend, or someone who is merely looking for a relatively low-risk investment opportunity that provides a better rate of return than a savings account. These loans should be treated just like a bank mortgage, with carefully crafted documents, including a promissory note, mortgage and a repayment schedule, reviewed and signed by both parties.

The real estate attorney at Sobi Law Group, P.L., represent lenders and borrowers entering into private mortgage agreements. We draft loan documents that fit our clients' needs and comply with Florida law. We also recommend and help with title searches and appraisals.

Real Estate Notes That Protect Your Interests

It should be noted that the inability to secure a bank loan is not always a sign of questionable creditworthiness. Self-employed individuals who earn a high income and retirees who have strong credit scores often have difficulty qualifying for institutional loans.

The documents for a private mortgage include:

  • Promissory note - This clarifies the terms of repayment, including interest rate, loan principal, payment dates and any penalties that apply for late or nonpayment.
  • Mortgage - This is the legally binding document that gives a lender the right to foreclose on a property if the loan plus fees and interest are not paid in full within a certain time frame.
  • Repayment schedule - Putting the agreed-upon repayment schedule in writing clarifies expectations and helps both parties avoid a legal dispute later on.

Contact Sobi Law Group Today

If you are entering into a private mortgage, protect yourself financially by enlisting the services of our experienced real estate lawyer. We work with clients in Plantation and elsewhere in Broward County as well as those in Miami-Dade and Palm Beach counties. Contact us to schedule a no-obligation consultation. We will answer your questions and recommend the best course of action.