Posted by James Strange on July 17, 2003 at 11:19:13:
Yastremski,
You do not own this property the trust owns it.
Lenders do not like to lend to trust.
Mortgage brokers (sharp ones)–problem. - Posted by Yastremski
Posted by Yastremski on July 17, 2003 at 10:42:46:
I (Carl Yastremski VI) am going to refinance a home (on Maple Street) which I have owned for about two years and originally set up as a rent-to-own. I am not occupying the house because the tenant buyer did not exercise his option.
My company (Silvergold Property, LLC) owns the house subject to the existing Mortgage. The original owner has deeded their house (on Main Street) to a Trust (Smith Family Trust). The only contents of the Smith Family Trust is the house. The original owner then appointed myself the Trustee and gave legal ownership compactly to Silvergold by assigning the beneficial interest in the Smith Family Trust over to Silvergold.
The problem is, I have owned the house in this manner for almost two years now, and I want to REFINANCE the property rather than BUY the property. I can apply for refinancing at a much much lower rate, saving me $300 to $400 per month
But the mortgage needs to be in my name (Carl Yastremski).
Silvergold does not have the credit rating that I have, so forget about my company getting the mortgage. Mortgage companies like warm money-earning bodies with social security numbers, anyway, right?
Won?t the mortgage company respect that my company owns the loan and the mortgage will be supported by me personally. That its? been me me me all the way?
One broker wants me to write out a land contract to myself (Carl).
Who would be the ?seller? on the land contract? The Smith Family Trust or Silvergold Property
Will they run a credit check on my company (rough startup credit record)
I hope I am I being clear enough here? Do you need more questions answered?
Yastremski
Re: Mortgage brokers (sharp ones)–problem. - Posted by Ed Garcia
Posted by Ed Garcia on July 17, 2003 at 11:55:57:
Yastremski,
What James Strange says is true, Mortgage Companies lend to individuals not entities. A Trust is an Entity. The reason being is that they sell their loans off and therefore the loans have to be marketable. You can get financing from a bank on an entity on a case-by-case basis.
You state, ( Won?t the mortgage company respect that my company owns the loan and the mortgage will be supported by me personally. That its? been me me me all the way?
Since you feel this way, you should have no problem doing what most mortgage companies request. That is to transfer the property into your name, borrower against it or refinance, then transfer it back into the trust.
This is done all the time.
Good Luck,
Ed Garcia