Title Holding Trust
I am kinda getting the idea. I have a question, if I have 100% interest, can I refinance the property within the trust and if so, do I have to qualify for the refi? Open for discussion
Thanks
James
JAMES:
Warning!!!!
If you have a Land trust with an existing Mortgage loan where the Owner/Settlor has granted YOU 100% interest You are in VIOLATION of the DOS (due on Sale) clause and the current Lender can Force the Loan DUE IMMEDIATLEY if they get wind of this!
To refinance you will need to show Title-Interest not just Beneficial Interest within the LT.
The lender you are applying with will want to see Your DEED (or other recorded interst), Insurance beneficiary/payee.
But maybe I am missing something here...
WHY do you want to Borrow from a Bank?
Personally, I haven't been to aa Bank for financing any of the 135+ deals I've done 1998?
Go to the Owner/Seller and/or your Tenant-Buers +Investor-Partners!
NEVER AGAIN do you Have To Go to A Bank or Loan copany..You CREATE YOUR OWN!
If you've gotten 100% Beneficial Interest (which I only take in Quick Flip Deals where I know I'll get paid in 30,60,90 Days)...
Why don't you just go out locate (advertise for) an Investor/co-Beneficiary to come in with the CASH YOU Need or WANT?
If you are still Cognitively RIGID and insist on punishing yourself you could go to WAMU who does loans to Land Trusts!
There are a few other lenders out there whom you can become persecuted by if you'd like a list of them all:
Pvt. Msg or Email me! (pardoned me if I feel as though I'm assisting you in Financial REI suicide)
I Hope this Helps!
Derrick Ali
[addsig]
WOW!
I didnt think all that was taking place. Thanks Derek! In order to get around the due on sale clause, do I have to relinquish some of my interest back to the owners? Okay here is what happen... I spoke with my neighbor 6 homes down who was about to loose their home; actually in 3 weeks. Her home has been appraised for $195k, she owes like $102K on her existing loan. She told me she was around $5600k behind and she has no way to come up with the money(she was layed off, and ashamed to ask for help). I wanted to pay her back payments and have her sell the home to me using a Title Holding Land Trust; opening the trust in her last name to avoid the DOS clause. What I wanted to do because I have excellent credit was refinance the home at a lower rate. Is this possible?? Any directions, I have the money to bring her out of foreclosure, but I want to be able to refinance the property and make a positive cash flow. I will be getting the house for the loan payoff. Please advise.
Why Refi?
Why not Quick Flip it?
Or do you want to take some cash out and hold the property for longterm reason?
REgarding the Land Trust:
The Settlor/Owner's Interest should not be less than 10% to cover your/their A$$ets under Tax and DOS rules!
I hope this helps!
Derrick
[addsig]
Derek,
Thanks alot! You have been very helpful. The reason for the refi is to pull cash out of the property and also I want to hold on to the property for a bit. Any advice?