Legal Question in Real Estate Law in Michigan

Re: Agent drew up promisary note at closing...

Given the brief set of facts that are presented it is not possible to tell. However, seller second mortgages are a tool that is used in both valid deals, and as a way to finance someone that could not be "fully funded" as you put it. Your bank would be able to address for you if a seller's second would have been allowed or was done improperly. A few questions however are if the mortgage is going to be recorded? Is it forgiven after less than the full payments? Was it destroyed in the parking lot after the closing? There is a significant amount of mortgage fraud out there now and financial institutions are watching more closely than ever. Your best bet is to see a real estate attorney and have them review the documents prior to moving forward on anything else.