Posted by Chris on February 01, 2000 at 02:54:46:
A revocable, living trust primarily used to hold title to real estate for privacy and anonymity. Also known as an “Illinois Land Trust” or “Nominee Trust.” The land trustee is a nominal title holder, with the beneficiaries having the exclusive right to direct and control the actions of the trustee.
This investment is a go except… - Posted by Brian
Posted by Brian on January 18, 2000 at 13:29:07:
I and a partner are still somewhat novices in the investing world and I have a general question that has come to mind in my early ventures. I am finding that there are some good investment proerties in my area that meet the 1-1.3% rule but financing is non-assumable and the sellers are either unable or unwilling to assist in financing. Can anyone provide me any advice on what to do next? Tips, strategies, etc.? Or is this just a closed door and time to move on to another property? I just feel when an investment is good and provides a good cash flow, it’s not just one to walk away from even though financing isn’t, on the surafce investor friendly. Any help greatly appreciated. Thanks.
Re: This investment is a go except… - Posted by chris
Posted by chris on January 18, 2000 at 19:18:05:
You could in effect make this mortgage assumable through a “subject to” purchase. The mortgage remains in the seller’s name, but you make the payments. You are providing them a solution. If they are motivated to sell they will definately consider it. If they are not, go on to the next deal. Don’t jump through hoops for these people.
You are probably worried about violating the due on sale clause by doing this. Look at their paperwork for DOS triggering. Check the articles at this site for utilizing land trusts to get around the DOS.
-Good Luck, Chris
What does the due do on sale clause mean anyway? - Posted by Lance
Posted by Lance on January 18, 2000 at 20:36:53:
I too am thinking about taking over payments for a lady who wants to get out of her house, and who is looking for a fast way to get out. She agrees to me taking over payments because my credit is not worthy enough to refinance. I thought about Lease option, but it’s not my choice of home to have forever! Because what I really want to do is either live in it myself and pay off another 10 grand on it. Then resell it, and make back my ten grand plus her ten grand. Hey that would give me a total of 20 grand to cash out. Or sublease it to someone else. I am not sure if this would interfear with the Due on sale clause. Could this work even if her name was still on the loan? Oh ya, and what does the due on sale clause mean? CAN SOMEONE HELP ME??
Re: What does the due do on sale clause mean anyway? - Posted by chris
Posted by chris on January 19, 2000 at 04:11:34:
Due-on-Sale: A typical clause of a mortgage requiring that the outstanding balance be paid in full on the sale of the property. In recent years the language of this clause has been broadened in many mortgages to include as the triggering event not only the actual sale of a property but the transfer of any interest in the property.
Look at her loan paperwork to see if it even has a due on sale clause. Older FHA/VA loans from the late 80’s and prior are fully assumable without qualifying.
A lease option can trigger a due on sale clause. So could you doing a subject to purchase (you make the payments, she keeps the loan in her name). However, if you are making payments on time the lender has little reason to trigger the DOS.
Read the articles on this site about the due on sale clause for more info. Keep these two words in your mind: LAND TRUST.
-Good luck, Chris
Re: What does the due do on sale clause mean anyway? - Posted by brandi
Posted by brandi on January 31, 2000 at 23:37:42:
What is a land trust?
Re: What does the due do on sale clause mean anyway? - Posted by lance
Posted by lance on January 19, 2000 at 16:07:55:
Thank you Chris!
I will keep those two words in mind.