Land trust —Will this work? - Posted by Jon
Posted by Jon on July 16, 2002 at 08:29:38:
The sellers have a house that has a 1st of $34K behind 1 payment, a 2nd of $78k behind 5 payments and received a foreclosure complaint(for the 2nd) that is on hold while they fill out hardship papers and a home improvement loan of 14k that is 8 months behind (they actually threatened the sellers with bodily harm). The house is in great condition and is worth about 180k. 126k is owed so that leaves it with about 54k equity.
They are willing to deed us the house if we catch them up on the payments and let them rent back the house to them. Their payments would be about $1400/ month.
We are thinking of putting the property in a land trust with the sellers as beneficiary and then having them assign me as the beneficiary.We would catch them up on their payments.(Try to get the payments put at the back of the loans).We would like to lease or rent them the house for up to 5 years.
I would like to offer them 140k for the house but hold their equity in case they can’t make their rent payments.
What do we need besides a trust agreement, warranty to trustee, assignment of beneficiary agreement and a rental agreement? Do we need a bill of sale and a contract yet?
And if we do we don’t want to close until they are ready to move on in about 5 years. The purchase would have to be subject to, so we also need a CYA letter. (We already have release of information forms so we can talk to the lenders)
This is only a 2nd deal in less then 3 weeks. We know this works, just a little confused with the paper work.
Also need to get the deceased husband off the deed.
Jon (in NJ)