Go Back To Search Results Question Can a private morgage lender do business in any state? I am looking to borrow from a family member in Michigan to buy a home in Utah. We are planning to have an attorney write up a formal mortgage. Can this be done like this, from Michigan to Utah? To clarify, I want to borrow money from a family member, they will hold a morgage... they have to be licensed? or no? Please state your source. By Posted on 06/09/10 Total Answers 4 Answers- You must be licensed in each state in which you wish to do business. Answer by : Crazeddoglady On Date 2010-06-09 04:11:44 I'm sure it can be done, but you'll need to use a lawyer who is competent in Utah state law - since that's where the property is. Answer by : Caveat Emptor On Date 2010-06-09 06:20:16 A one-time transaction between family members would not require the Michigan family member to register as a mortgage lender. Transactions between individuals are not usually subject to such rules. All that needs to be done is hire a real estate attorney in UT to handle the transaction. They can complete the loan agreement and the mortgage and they can record the documents with the county registrar and send the recorded mortgage back to the family member in Michigan. Answer by : GUS On Date 2010-06-09 07:03:05 I am a licensed Mortgage Banker in Utah and I have done private lending (hard money) as well as loaned out funds personally. I can tell you that a transaction like the one you are talking about does not require any licensing at all. The state has certain requirements and they boil down to the frequency with which you lend money and how much. After a certain point you would be considered someone who does it professionally. Then of course you would need to comply with the state laws regarding lenders, but they do not regulate private transactions like this that occur rarely and between related people. I dont know that an Attorney is necessary unless you feel you want another set of eyeballs to look over the terms of the agreement, otherwise a competent Title and Escrow company can complete the papers, which are called a Note and Trust Deed. The note being the document that spells out the financial terms of the agreement, and the Trust Deed being the paperwork that spells out what property has been pledged as collateral for the loan. The Deed of Trust (Trust Deed) will then be recorded in the County Recorders Office as a public record. The note will be retained by the title company as well as any that wish to retain a copy. It is not typically recorded however as a public document, at least not in Utah. Rather than an Attorney, I would highly recommend spending the money on a Title Policy. Its a very inexpensive way to ensure that there is nothing that could jeopardize the loan on title like liens, judgments etc. Answer by : Utahmortgageteam.com On Date 2010-06-09 09:18:35   Go Back To Search Results