Is it ok....... - Posted by Cal

Posted by Randy M on October 31, 2000 at 17:51:26:

I just spent last weekend in Denver with Bronchick and a bunch of other heavyweights and other RE investors. I bought Bronchick’s Cash Cow instead of lease option because I have done a lot more studying L/Os. I am glad I did. I am finding the course to be incredibly easy to understand and it really fits the bill. As a matter of fact, I just had an offer accepted today on a Cash Cow deal. But to answer your question - are you going to be more into L/Os or are you going to be more into wraps, land contracts and land trusts? That’s what Cash Cow is based on. Best of Success!

Is it ok… - Posted by Cal

Posted by Cal on October 30, 2000 at 22:19:59:

To have the owner tell the bank that their house has been placed into a Land Trust and for that bank to send all financial matters concerning the house to the appointed Trustee? If placing property in a trust is in fact legal, then what can the bank say? Or is there another way of getting all of the financial matters into our hands.

Cal

Re: Is it ok… - Posted by B.L.Renfrow

Posted by B.L.Renfrow on October 31, 2000 at 07:17:55:

You can do it the way you propose, but the good chances of the lender screwing it up or making noise about wanting to see the trust make Jim’s method much more efficient.

In fact, that’s what I do as well; just fill out the change of address box. ALL the lenders know how to deal with that.

Brian (NY)

Re: Is it ok… - Posted by Jim IL

Posted by Jim IL on October 31, 2000 at 03:06:51:

Cal,
I have done a few “Subject to” deals, where the home was placed into a trust and the trust assigned over to me.
In the begininng, I would send a letter, signed by the sellers, to the lender advising them that the home was placed into a trust and to mail all future correspondence to the trustee at the trustees address.
But, only ONCE did the lender cath this and mail it out properly.
After having T/B’ers call me saying that they got "This thing in the mail with John Doe’s name on it, what do we do with it?"
I then just checked the box on the statement or billing coupon marked, “Change of address” and then filled in my office mailing address.
Those bills, statements etc. then started coming here with the sellers name on them, but I knew what they were.

So, now rather than even bother with the letter to the lender, I just do the “Change of address” on the payment stubs.
I still get the letter,“just in case” I ever need it in the future.
Plus all the other CYA docs in place as well.

If you do not already have a good course on this type of deal, get one.
It will save you time and hassle, and possibly money down the road.

HTH,
Jim IL

Re: Is it ok… - Posted by Ginger Harris

Posted by Ginger Harris on October 30, 2000 at 23:54:33:

If the property was placed in a Land Trust after you obtained the bank loan, can’t the bank say, “I don’t care if it is in a Land Trust, you signed as an individual and you personally are still liable.?”

Re: Is it ok… - Posted by Gary (WA)

Posted by Gary (WA) on October 31, 2000 at 15:03:13:

Would you recommend the ‘Cash Cow’ and/or ‘Land Trust’ courses from Bronchick to help understand a deal like this?

Re: Is it ok… - Posted by Cal

Posted by Cal on October 31, 2000 at 24:08:40:

Well yes of course the originator of the note will be liable until the property is sold, paid off, or assumed by a qualfied buyer. I didn’t dispute that at all. I did ask though if the financial matters such as payment books, tax statements etc can be sent directly to the Trustee since the Trustee will be handling these things. I didn’t say the trustee was responsible! I just said can the financial matters be directed his way since he is going to be managing the property.

The original question is still open for answers.

Cal