steps to a private family mortgage loan?

[frankc29]

What is the name of your state? California

My father is going to refinance my home with cash out for home improvements. This is going to be a personal transaction. He does not require of me a title search or mortgage insurance or escrow account. After looking around the net for a few hours, I have come to the conclusion that I only need to do the following:

1. Fill out and sign a prommisory note, a standard Fannie Mae Single family fixed rate (Form 3200), for a 30 year term, current Federal Spplicable rate for long term loans.

2. Fill out, have notorized, and have recorded a Deed of Trust, Fannie Mae (CA) Form 3005

3. Recieve money, pay off current mortage, make new payments.

Now I understand that recording the Deed of Trust will take care of me being able to deduct my interest off my taxes, correct? I will need a statement of interest yearly from my dad for this? How about the new loan showing up on my credit report, how would I go about making that happen? Please if you see anything I've left out or you have any advice for me, let me have it. Thanks!

 

[seniorjudge]

"Please if you see anything I've left out or you have any advice for me, let me have it."

Yes, you need a real estate attorney to do this for you. You just do not realize how easily and quickly you can mess up the title to your real estate; it will then take a lot of time and a lot of money to fix it.


"He does not require of me a title search or mortgage insurance or escrow account."

Exceptionally bad idea on your father's part.

 

[frankc29]

Bad idea? I moved into the house 3 years ago to work for him, a new sub division and I was the first owner. I've refinanced once. So right there 2 title searches have been done. I think it's safe to say I am the rightful owner, no?? As well there are many families out there who love eachother and do not screw eachother over, regardless, if that's what you are hinting at. Why would I need a lawyer for something this simple? Please please give me a scenario where I can screw up my title?? Sorry about my brisque response to this, but I've always disliked this instant rush to pay an attorney, you would think there should be an automated answer to every question asked. "Get a lawyer" "Get a lawyer". There are some things out there that do not require making a lawyer richer, and if I proceed properly, this can be one of them. Now is there anyone that can give me useful advice, or if there is a missing piece to my plan?