Posted by Jason-DTX on January 19, 1999 at 23:32:00:
I’m from a deed of trust state but I think the answer is the same. You should have the land trust be mortgagor. If the sellers insist and want the corp to be liable then the corp can sign the note and the trustee can sign the mortgage. This will make the corp liable for the note but not be on the recorded mortgage. Its best to have just the trustee of the land trust sign the note and mortgage. Since your dealing with an individual and not an institution you should be able to have the trustee sign as trustee on all the docs and you or your corp won’t be personally liable on the note. I’ve done several this way and the seller’s just don’t care (or know the difference) on which enity you use tp sign the paperwork.
Jason
Posted by Jerrelle on January 19, 1999 at 21:28:47:
I have a deal where my seller is taking a 2nd mortgage for some of her equity (the property as sole security). I am having her transfer the title into a land trust then assign me the beneficial interest. When the 2nd mortgage documents are created, can the land trust be listed as the mortgagor (giving the mortgage) and she being the mortgagee, or does my corp have to be listed as the mortgagor? Of course when the mortgage is recorded and if the corp is listed, this would reveal the ownership interests. If the answer is the corp, is there anyway to do this without revealing the corp’s ownership interests? (fictitious name?)