Mortgage Note Solutions for Family Law Attorneys in Texas
Helping Family Law Attorneys Protect Clients with Seller-Financed Promissory Notes
As a family law attorney in Texas, you may encounter clients who hold seller-financed promissory notes (also known as seller-carry notes). These are unique financial assets: while tied to real estate, they are not the property itself. Instead, they represent a long-term receivable that impacts cash flow, property division, and the overall divorce process.
At Secured Capital Resources, we provide mortgage note solutions for family law attorneys, helping you guide clients through valuation, division, and liquidity options for seller notes.
What Is a Seller-Carry / Seller-Finance Note?
In a seller-financing transaction, the buyer and seller agree on a sale price for the property. Instead of relying on bank financing or traditional lenders, the seller provides financing for a portion of the purchase.
The terms Seller-Carry and Seller-Finance are used interchangeably.
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The buyer signs a promissory note outlining the repayment terms, including the loan amount, interest rate, maturity date, amortization schedule, and any applicable balloon payments.
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The seller secures repayment with a deed of trust or mortgage loan, creating a lien on the property.
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The buyer receives the deed, moves in, and makes monthly payments directly to the seller, often with interest.
This is how seller financing works: the seller essentially steps into the role of lender.
Legal Context for Family Law Attorneys
These agreements are governed by Texas Property Code Chapter 5 and standard purchase agreements. In cases involving residential property, additional disclosures may apply under Texas Finance Code §180 and federal regulations (Truth in Lending / Regulation Z).
For family law professionals, seller-financed notes require careful treatment because they are:
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Classified as an installment receivable (not real property).
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Considered marital property if jointly owned, and must be addressed in the divorce decree.
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Subject to valuation for both principal balance and cash flow from ongoing payments.
Why Seller-Financed Notes Matter in Divorce Cases
If a seller note exists during the divorce process:
✔ It produces income from monthly payments.
✔ It retains a principal value that may need to be divided.
✔ It can be sold to investors for a lump-sum payout (though often below face value).
✔ If the buyer defaults, the seller may need to foreclose or enforce remedies under the note.
For family law attorneys, this means the note must be:
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Valued for division
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Assigned to one spouse or equitably split
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Considered in the overall property division along with other marital assets
We provide mortgage note solutions for family law attorneys that align with the role as a trusted advisor in family law:
Valuation Support
Clarify the value of seller notes, including principal, interest, and payment stream
Liquidity Options
Give clients the choice to sell a mortgage note for a lump sum instead of waiting years for full repayment
Settlement Flexibility
Structure outcomes that consider interest income, balloon payments, and buyer default risks
Professional Partnership
We don’t replace your services; we strengthen them by providing specialized tools for complex real estate and financial settlements