Legal Question in Real Estate Law in Michigan

Re: Paid Off Mortgage

You can draft another mortgage in the name of your family member as the lien holder. The mortgage can provide for no interest if that is the agreement. Make sure the mortgage is filed with the Recorder of Deeds office in the county where the real etate is located so that a title company will find it when they do a title search for a refinancing or sale. The title company will then pay the lien holder at the time of closing on the sale or refinance.

Let me know if you need assistance with drafting the mortgage.

Re: Paid Off Mortgage

If there are going to be no monthly payments, a contract setting forth your agreement and a lien recorded with the Register of Deeds will propbably meet your needs. You will probably want an attorney to draft these documents for you to make sure they are legally enforceable. This would be a good investment.