Posted by John Katitus on December 23, 1998 at 23:55:59:
I’m afraid I did not phrase my question clearly. My question really is how do you as Beneficial Interest go about refinancing a property that is held in Land Trust?
Land Trusts and Financing - Posted by John Katitus
Posted by John Katitus on December 23, 1998 at 02:37:34:
How do you apply for financing for a property held in Land Trust? Who applies - the Trustee or Beneficiary? Who qualifies if required? Is there a seasoning period required? How do institutions regard Land Trusts? Anything else we need to know? Thanks.
Re: Land Trusts and Financing - Posted by John(NH)
Posted by John(NH) on December 23, 1998 at 09:05:44:
The buyer is always responsible for getting financing,
whether the property is in a Land Trust or not. If
getting a new loan, the existing loan will be paid
off and the property will be transferred out of trust
to the buyer (you). However, it is much much better
to buy subject to the existing trust. Simply have
the seller assign beneficial interest to you, and
find a solution to pay his equity (if any). The
property stays in the Land Trust, no new loan is
required, and the buyer (you) is now paying the loan
through the existing trust.