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In a situation like this, you would want to have a Promissory Note drawn up and signed by the borrower as well as a Deed of Trust (i.e. mortgage) against his property that gives you the right to foreclose and sell the home in the event of a default.
I would highly suggest that you require the borrower to pay for a title search on the property for you prior to making a loan because you don't want to loan money on a property that is worth $500K that has $498K owed against it already...
I can't provide legal documents to customers as that could be interpreted as legal representation. But I can direct you to a site I use myself for professionally drafted forms that you can purchase for a fraction of what an attorney would charge. The site is USLegalforms.com and they provide state specific forms. Just search for Promissory Note and then Deed of Trust and it will bring up both of them for you.