Posted by JohnBoy on March 24, 2001 at 24:36:14:
You don’t have the seller place the house into a land trust naming you “the buyer” as the beneficiary.
You have the seller place the house into a land trust naming the SELLER as the beneficiary. Then you have the seller “assign” his/her beneficial interest over to you using a seperate assignment form.
The purpose of doing this is to hide the transfer from the lender to avoid them from finding out you took the loan over “subject to”. If they found out about it they “could” (they don’t HAVE to, but “COULD”) call the loan due under the due on sale clause in the mortgage agreement.
You form a land trust by getting Bill Bronchick’s course OR you can pay an attorney to form one for you. Paying an attorney would cost you more than Bronchick’s course would and with Bronchick’s course you only pay for the course ONCE and you can create as many trusts as you want from it without having to pay an attorney EACH time you need to create one!