Re: PACTrust Help/ Question… - Posted by Bill Gatten
Posted by Bill Gatten on March 13, 2000 at 23:41:02:
When a mortgator places his property into a PACTrust, and goes out to buy another house, in order to keep his debt to income ratio at the maximum (100%), he heeds a letter to his new lender explaining the terms of his PACTRust, and showing that it does not involve any negative cash flow, maintenac or repairs costs and obligation; and that it entails no vacnancy factor (since it is for, say 5-6, or 7 years or more).
In my experience all banks (without any exception that I know of) have regarded the PACTRust transactions as they would a Wrap or Contract, and consider the property sold, even though their borrower is still on the loan.
If you need a copy of the letter I use for that purpose, just let me know.