Can you wrap twice and use an AIDT? - Posted by Kristine-CA
Posted by Kristine-CA on April 22, 2007 at 11:18:03:
Greetings. If am taking property subject-2 and selling to a tenant/buyer, can
I use an all-inclusive deed of trust on both the purchase and sell? I would
like to execute the paperwork in such a way as to avoid a lease/option. I
want the end buyer to be purchaser, not a l/o buyer, and I want recorded
docs that cover all the encumbrances.
Let’s say I get the deed on a property where $150K is owed and seller wants
5K, but he is willing to wait for his payment. I can sell to a tenant/buyer for
$200K. So I take the the property subject to the financing, with the seller
essentially carrying back the 5K. I execute an AIDT in favor of the seller for
$155K. I then I sell to a tenant buyer, signing the deed to them and getting a
10K downpayment and we execute an AIDT in favor of me as the seller for
So, upon re-sale or refinancing by the end buyer, there would be demands
required from the lender of the 1st, the seller holding the first AITD and me
holding the second AITD.
Putting the issue of due on sale aside here, and I know it’s an issue, is
everyone covered here? I am assuming the the AITD gives the beneficiary
similar recourse to regular trust deeds upon nonpayment?
Is this a possible or good way to keep good financing in place so that it can
be offered to the end buyer? Other than calling the loan due, or foreclosing
for non-payment, does the lender have any other say in the matter?
Thanks for any input or suggestions. Sincerely, Kristine