"subject to" existing financing - Posted by michelle

Posted by doug,ky on December 29, 2000 at 09:13:45:

Get a new lawyer. First the property title is place in the trust with a trustee. The seller doesn’t have title anymore. Anything that happens to the seller - judgements, leins, etc can’t attach to the property because the seller doesn’t have title anymore. And as long as the seller doesn’t file bankruptcy immediately after placing the property in the trust, you will be okay. People place propperty in trust for asset protection.

“subject to” existing financing - Posted by michelle

Posted by michelle on December 28, 2000 at 16:12:08:

Hello, Can anyone tell me what is better, Pactrusts, Land Trust or having the owner deed the property over to me? It seems easier to, just sign the deed of trust over and wipe out the original owner with no risk of bankruptcy, lawsuit or liens. Of couse, there is the possibility that the lender will call the loan due, but if the payments are current I see no problem. I’m planning to just rehab and sell within a few months. Please give me advice for “Subject To”. Thanks Michelle

Re: “subject to” existing financing - Posted by JPiper

Posted by JPiper on December 29, 2000 at 24:27:00:

Nothing wrong with deeding to a land trust…PacTrust looks like overkill. However, if you’re going to rehab and sell in a few months, I wouldn’t worry about the loan being called…and therefore accepting the deed directly to your corp would not be a problem. By the time anyone would discover the due on sale thing and attempt to act it would all be over.

JPiper

Re: “subject to” existing financing - Posted by dewCO

Posted by dewCO on December 28, 2000 at 21:04:30:

I think PACTrsut is better for “keepers”. You want to take title or immediately upon closing put it into a land trust is always the safest, it anyone tries to attach your assets. The paperwork and cost is minimal.

Re: “subject to” existing financing - Posted by michelle

Posted by michelle on December 29, 2000 at 01:44:20:

Hello, are you saying that the paperwork for a “Land Trust” is minimum? I guess what I’m getting at is that, I saw a Lawyer today and it wasn’t good. He said it would cost $800 to $1200 to do the deal. He said, that there was alot of risks involved, bankruptcy, lawsuits and liens involving the seller since he would still be on the title. I agree with you about the PACTrust, it does seem to be for “keepers”. I think there goal is to keep the property for a minimal of three years, make there money on appreciation. Could you recommed someone for “Land Trust”, I’ve read, William Bronchicks, articles on " How to beat the Due on Sale Clause", is there anything out there more in depth? Does, Bill Gatten, coarces cover the “Land Trust” in depth? Thanks Michelle