Sherry,
The old deed will mean nothing once a new deed is recorded.
The deed is simply the document used to transfer title of the home to the trust.
So, after you “Get the deed”, if you use a land trust, and assign the beneficial interest in the trust, ownership will look like this.
Trust owns the house
You own the trust
No one knows you own the trust, which controls the house.
So, you have hidden the asset.
And not red flagged the lender about the Due On Sale clause.
And the loan can stay in the sellers name.
You should get a course and/or an attorney to help you prepare the docs on at least your first one.
This way you will do it right, and have all the right docs filled out and bases covered.
This is my personal favorite way to buy homes, and I just did one today.
Can People Give Me Their House? - Posted by Randy Welborn
Posted by Randy Welborn on January 11, 2001 at 18:51:38:
I have become curious after reading the posts each day. If someone is behind on their mortgage. Can they sign the house over to me. I catch up the mortgage and it is mine. I read another question on here that made me curious. If so teach me how to do it. Thanks in advance.
The answer is “yes”, you can do it. The problem is that most modern mortgages have a “due on sale clause” contained in them which is triggered when the property is deeded. There are various techniques to deal with this situation, each containing numerous details. My suggestion is that you read some of the “How To Articles” here on this site regarding land trusts and PacTrusts to get a feel for the techniques and details. There are undoubtedly numerous posts regarding these techniques located in the archives. After you have read all of this information you might want to buy a specific course covering the technique(s) that make sense to you.
Randy,
Welcome aboard.
I see that you have been here a little while, are reading the posts, and wanting to learn.
Bravo!
What you are talking about here is what we commonly call buying a home “Subject to” the existing financing.
If you find a home owner who is behind on their mortgage and is willing to sign the deed over to you, and leave the loan in their name, get it.
Just make sure the numbers make sense.
Bill Bronchick has a good course that teaches this, and so does Legrand.
You would essentially agree to make up the backpayments, keep the payments current, in exchange for taking title to the home.
You may want to read the articles here about getting around the Due On Sale clause to get a better view of “How” to do this right.
I think Bronchick wrote them.
I thoroughly understand the “concept” of this and I also know that I can put a buyer tenant in that home,use part of their downpayment money to catch up back payments(L/O) I get all that. Where I am confused is the paperwork.What documentation exactly do I need to have that person or persons sign in order to take posession of that property?
I get a blank deed,fill it out and have them sign it,Right? Now do I actually take posession of their old deed?I don’t believe we want that floating around some where.
I also have them sign CYA,the one I use explains “subject to”.NOW what else do I need as far as paperwork?
Also, do I or don’t I file at courthouse? I’m getting 2 different opinions.
Experienced help needed.
Thank you,
Sherry