How to Write Your Own Mortgage and Avoid Banks Altogether

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By Meno
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Take Control of Your Financing

During these economic times it would seem as if everyone but the consumer is getting a bailout. But what if we didn't need a bailout? What if we could by-pass the banks and their credit crisis and finance our own needs? This article focuses on ways in which this can be realistically done, focusing primarily on a mortgage.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

Private lending facilitator
Private lender
Cash (optional)

Step 1

Do your research.

FIND A PRIVATE LENDER: This is something that has been done for centuries. Where an individual, business or group has a need so great that requires funding, they simply borrow it from an individual. There are plenty of individuals who are willing and capable of lending money for whatever needs may arise, (mortgage, school loan etc). Just do a google search on private lenders, peer-to-peer lending or private lending and you will find oodles of information on the subject. Make sure you do your research and ensure that the terms and interest rate fits your objectives. The beauty about private lending is you have more flexibility in negotiating the terms of your loan than had you gone to a bank, which typically offers contracts of adhesion. Which simply mean you either take or leave it.
Step 2

Networks are great!

CREATE A NETWORK: If you are not successful with finding private lenders you can create a network of lenders and borrowers by yourself. Commonly known as peer-to-peer lending, these networks can certainly enhance ones potential of securing funding for your unique needs. This does not have to be as extravagant the Lending Club (see in resource link below), but it can be an informal group of just family, friends or people with a common interest, who merely pool their resources together in order to facilitate cash-flow in the community. In doing so a borrower is able to obtain financing and the lenders enjoy a certain rate of return. This works well with church groups, investment clubs, or any other organization that think that they can capitalize on the banks' unwillingness to lend and create networks of borrowers and lenders. For example, the Metro Atlanta Investment Network (or M.A.I.N St.) is committed to providing mortgages for its members as a means to facilitate cash-flow. You can visit them at the resource link below.
Step 3

Find a facilitator

LEGITIMIZE YOUR LENDING RELATIONSHIP: Once you have secured a lender, part of due diligence is legitimizing your lending relationship. This simply means that you should ensure that your documents are in order, by either consulting an attorney, escrow agent or using one of the many online sources which assists you in getting your paper work in order. My favorite of them all is Virgin Money. I know that there are other facilitators of the lending process and they have not invented the wheel, but they seem to be pretty helpful and follow up on issues whenever I raise it to them. You can visit them at the resource link below as well. There are many ways in which one can by-pass the banks and secure funding. Hopefully this article will start you on your journey in accomplishing these goals.