Can this be done..and what if? - Posted by Jim LaVerdi

Posted by Steve-Atl on June 04, 2000 at 08:12:38:

I like to stay in control by selling on an Agreement for Deed. That way I receive the payments from my buyer and I make the payments on the underlying “subject to” mortgage. Selling using a lease option is another way to stay in control.

Can this be done…and what if? - Posted by Jim LaVerdi

Posted by Jim LaVerdi on June 04, 2000 at 01:08:57:

I take title to a property “Subject To”.
I explain it, and have seller sign the CYA letter stating that I am not assuming the loan etc.
I put the property in a land trust with the property deeded to my trustee as trustee’
I get beneficial interest assigned to me.


Can I sell this property to a buyer, by taking a down payment from them and signing the deed over to them?
Can I sell it legally as a “Subject To” deal? If so is this a safe way to do this?
What if they default, what is the original owners recourse to me? I surely wouldn’t want to develop a reputation as an investor that lets stuff like this happen! So how would I do this safely? Should I just do it as an owner finance deal or lease option it to my buyer and let them re-fi if they decide to buy?

Thanks for you help

Jim LaVerdi

Re: Can this be done…and what if? - Posted by B.L.Renfrow

Posted by B.L.Renfrow on June 04, 2000 at 08:31:02:

I agree with Steve. You COULD sell by assigning beneficial interest in the trust, but this takes you out of control.

A better plan is to sell on a land contract or lease-option, or create and sell a note at closing and pay off the underlying loan.

Not to nitpick, but one little correction on your initial steps: when you take the property subject-to, the SELLER - not you - deeds the property into the trust. YOUR name does not appear anywhere in the chain of title.

Brian (NY)