Huh? - Posted by Glen SoCal
Posted by Glen SoCal on March 23, 2002 at 03:11:48:
The lender DEMANDING you to sign personally on the loan? TAKING title in a Land Trust or LLC?
How about, you deed he property to a Land Trust. And you assign beneficial interest of the trust to a person, or an LLC or some other entity.
People deed their asstes to trusts often. It’s a vehicle used to designate the disposal of assets to others, right?
If the ‘partner’ is attempting to convey his title to his friend without triggering the DOS, his signature is still on the loan. He may have aggreed to convey title (after a lot of payments or pay-off) of the COLLATERAL for that loan (the house), but, he still owes the money. That agreement hasn’t changed.
I.E. You don’t buy a house, you collateralize a loan with it.
Lenders want collateral, and they want to appraise the the ability of the barrower to pay, and then they choose to fund or not. Conveying title without their consent kind of screws up that agreement, yes?
But to say that the partner has to personally ‘sign’ now for the loan because he is transferring his property to a trust, I don’t think, is within the LEGAL power of the lender.
I’m a newbie. This is just what I read, or think I read. So check my facts.