PactTrusts, Land trusts, subject to…is all this really necessary? - Posted by HR
Posted by HR on May 24, 1999 at 08:45:57:
Far be it from me to want to stir another controversy. It appears that the barbarians have been storming the walls again, and we all are in need of a little peace and quiet. I have followed some of the posts with some amusement, though, and as a newbie, I wanted to ask a question that has been brewing in my mind: is this really necessary?
I’m thinking specifically of the land trust/pact trust/subject to DOS issue. Now, before folks start telling me about banks calling loans, the importance of hiding ownership etc (I’m not that green), I understand all that. My point of reference comes from a local man in my reia club that keeps telling me, Just do it. He has taken over 100 loans subject to, in the face of the bank, and they have never called them do. Never will he maintains. Oh, sure, I understand they might, and if the rates rise, yada yada… but I must confess, I start feeling like a newbie, professing the need for the land trust (which nobody here uses or has even heard about) when others arent bothering with the hassle and expenses, and doing fine without the aggravation. Is it really worth it? Is it truly so risky to take a loan subject to, that its worth all this extra effort?
Ps. I have not read the PacTrust yet, and don’t plan to. I like Mr. Gatten’s wit and mind, but ive concluded that that instument is far too wieldy and not worth it. Sorry bill. Maybe someday when my investing needs are greater, but not now.