Re: subject to question - Posted by Russ Sims
Posted by Russ Sims on February 12, 2002 at 02:09:09:
On the change of address I just change the address only, not the name. I get John Seller’s statements, as well as a lot of his junk mail (he should thank me for that)! I follow up the change of address with the letter informing the lender that the property is now in a trust, and I’m the trustee… I ask them to please acknowledge the trust and send all further correspondence to me, the trustee.Trouble is this letter takes a while to course its way through the system. In the mean time I really want to get the statements…that’s why I immediately do the change of address thing. At least it gets the correspondence coming to me right away. Now sometimes the lender sends me a letter saying that they will only authorize the transfer to the trust if the trust has this feature or that feature, meets this condition or that condition.And, by the way, they’d like to see a copy of the trust. If the lender want’s to get picky about it then I just forget it; the property is already in a trust and I don’t need the lender’s sanction. I simply stay quiet about it and never hear from the lender again regarding the trust issue.
I simply use my company name on the purchase and sales agreement with the seller. I don’t see any reason to mention the trust in that document.
Yes, this is almost always a no money down deal. Believe it or not sellers are usually glad they don’t have to PAY money to get rid of their home. In those instances where sellers do insist on money, I rarely give cash…If the deal is good enough I’ll give them a note. This note usually has no interest or payments for 3 years!! By the 3rd year I’ll have my buyers qualified for financing so I can cash the property out.I have done a couple of deals where I’ve given cash soon after signing. I will do this only if there’s good equity in the home. One recent deal we did required that we pay the seller $3,000. $1,000 within a month of signing and another $2,000 within 8 weeks of signing. We hoped to have the home sold (and our buyer’s down payment in hand) in time to pay that short term note. The home didn’t sell so we had to come out of pocket for the dough. But any time you can pay $3,000 to gain over $50,000 in equity, it’s hard to turn down. Best thing is we DID wind up selling that house to a young couple who pulled $38,000 out of a trust fund for the down payment (that amounted to 25% down).
I agree with you: it’s a ridiculous notion, this idea that someone would sit down at their kitchen table and just deed you over their home. But it HAPPENS ALL THE TIME. We just took one home over from a couple that didn’t even read our contracts…they just signed them. In fact THE NOTARY read the contracts more thoroughly than the sellers.You see the sellers were getting a divorce. Their home was the least of their worries and they were glad to turn it over to us…