Deed Of Trust In TX... Explanation Please...
Ok, Ive posted several similar topics and usually get very limited responses. I just need to know, since in TX Contract for Deed is a no-no, and selling on Deed of Trust is the next best thing, how do they differ? Could someone give me a step-by-step of selling this way and any complications with it? Texans are encouraged to respond but anyone's input is just as appreciated! Thanks as always.
I've got the same question.
Where are the Real (Estate) Texas?
Obviously, for one reason or another, no one really knows. I had a very similar question about doing business in Arizona, and it took a month to even get close to an answer. So, just wait 2 to 4 more weeks, and someone who actually knows what they are doing, and not just pretending to be an investor, will come along and answer your question. Have a good day.
Can it be assumed that there are no currently practicing Texan Sub2ers utilizing alternate methods to CFD? How disappointing...
I'm not totally sure. There seems to be plenty of people here that say that they are investors, so it seems like someone would be sub 2ing in TX. I wish you well. Maybe try investing in another state?
Thanks John! Is a Wrap the same as a Deed of Trust? And what is "A.I.T.D."?
I think that you must own the property outright to sell using a Deed of Trust to convey title. What are you trying to accomplish? I just used a Contract for Deed on a piece of land that I still owed $on to make a sale. When the buyer obtained financing to build their house, they paid it off, and then the title was conveyed with a Deed of Trust...a Title Company should be a good source of info.
ramgon,
This would be an example of an AITD
http://www.cindybaek.com/Docs/All-Inclusive.htm
John $Cash$ Locke
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Thanks for answering his question in such a timely manner John.
brianmart,
Glad to meet you.
As long as you comply with the following, which is only a small portion of 29 pages effecting a contract for deed in Texas you are OK.
The Texas Senate Bill 198 titled "Executory Contracts for the Conveyance of Real Property" became effective September 1, 2001.
The actual changes are 29 pages of legislation and affect all persons receiving payments on a Contract for Deed in Texas.
If you hold or purchase Contracts for Deed in the state of Texas you will want to consult your real estate attorney to see how the changes will effect you.
These are some of the general changes you should be aware of:
New notice and cure and forfeiture/foreclosure sale requirements are established by the bill.
The payor has a 14-day right of rescission after closing, and specific disclosures must be made at closing.
Default notices have specific guidelines on the wording and must be printed in 14-point boldface uppercase typewritten letters.
New insurance related responsibilities are placed on the holder of the Contract for Deed.
Insurance checks must be issued in both the name of the payor and the holder of the contract, and proceeds must be used to remedy the condition of the property for which the check was issued.
An annual statement must be provided for the buyer by January 31 of each year disclosing certain tax, insurance and other account information.
Failure to comply with the annual accounting statement requirement could expose you to liability of $250 per day plus can include a refund to the payor of all payments made. Example: three years of $300 monthly payments could amount to a $10,800 refund to your purchaser!
This is the reason Texas creative investors went to Lease Option or A.I.T.D.
John $Cash$ Locke
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miraclehomes,
No problem, I try to answer as many legitimate posts as I can, sometimes they hit so often I miss some.
John $Cash$ Locke
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Quote:
On 2004-07-15 18:04, brianmart wrote:
I think that you must own the property outright to sell using a Deed of Trust to convey title. What are you trying to accomplish? I just used a Contract for Deed on a piece of land that I still owed $on to make a sale. When the buyer obtained financing to build their house, they paid it off, and then the title was conveyed with a Deed of Trust...a Title Company should be a good source of info.
Hey Brian,
Just to clear up a misconception for you and others reading, it is the deed that transfers or grants title. A Trust Deed (aka Deed of Trust) is actually a security instrument (like a mortgage) that places a lien on real property. There are three parties to a Trust Deed (TD): the borrower, the beneficiary (lender), and the trustee.
When you take out a loan you sign a promissory note. That note is then secured by the property with a TD. The purchaser of the property has equitable title. But the TD gives bare legal title to a trustee (who holds title in trust...hence the name). The trustee essentially has two powers granted by the TD. If the debt is repaid in full, the trustee has the power to reconvey full legal title to the owner. However, if the owner defaults on their loan, the trustee has the power to foreclose.
Cheers!
One more thing, I understand that with a wrap, you grant the deed to the buyer at the beginning of the note. What does this mean in terms of control of the property?[ Edited by ramgon1280 on Date 07/15/2004 ]
ramgon1280,
That means if the buyer does not make the payments and you have to foreclose you get the property back.
However, there are alternate methods of removing a buyer from a property, use the same method you use when you purchased the property, give them U-Haul money to leave.
John $Cash$ Locke
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