This is not the only method for soothing the psyche of the seller, but you could offer to make an arrangement in which you offered to sign a “quit claim deed”, deeding the property back to him if for some reason you defaulted in your performance.
Of course, you would have to protect yourself from his whimsically deciding that he wanted it back, and you would have to be prepared to surrender the property if it came to that.
Both of you could be co-beneficiaries and you could both have the trustee that you mutually agree upon. Then you could give the trustee the agreement and the instructions necessary to perform as needed, if needed.
I have a home that I want to L/O and we were going to sine
the paper’s this moring and they called and said that there
lender V.A. would not allow them to lease there home.They
are still willing to do if I can show them that it will
be Ok.
Please advise thanks Billy
I don’t see how the VA could object; but if, indeed, they do, you could have the owner put the property into a land trust, make you the beneficiary and then you could do whatever you wanted to. Neither the VA nor anyone else would have any knowledge of what the land trust was doing with the properrty.
Posted by Phillip on December 18, 1999 at 09:47:11:
Your response regarding the land trust sounds like an excellent one, however, what if the owner is a little nervous about having the trust created with this “new business associate” the person signing up the lease option as beneficiary? Any concerns that they are “signing away their home”? One of the pros on this site made what I considered another excellent suggestion so as not to trigger the due on sale clause; record a performance mortgage against the seller rather than a memo about the l/o agreement, this elminates the possibility that the lender might learn of this arrangment. Please respond…