How Do You Buy Someone Landtrust
How do you buy someones beneficial interest in a landtrust? And what do you do about an exisitng lien against the property.
Also do use a title company to facilitate the process.
so are most landtrust that re modeled after he illinois landtrust agreement model after spend thrift trust. I am going to contact a title company with this information thanks
In my expereince if it is not on paper, a deal is worthless. Oral agreements often do not work as there is no real way to enforce them (any easy to back out of as you have found out).
I realized format was a little messed up after I posted. Thanks for your response and since then, they emailed stating that they would give us the definite amount within an hour- this was @ 4:05pm EST- the time is now 11:30pm and STILL no word- as someone else stated-time to play the game- wil keep everyone posted!
I know it does not help now but in the future use a double escrow. One to do the assignment with the same price that you negotiated and the other escrow to fund your profit in the deal. This is the only way to protect your self and avoid any nonsense or flipping rules.
[addsig]
tought lesson. Check out if your purchase agreement is still valid?
I had a similar experience except the rip-off was not so large as yours - I learned my lesson about getting things in writing and not to rely on a handshake and that bad people can look you straight in the eye and lie.
Can you use an LLC as the trustee? or does it have to be a real person?
J
Post it on the website and we will feature it free.
a couple things come to mind:
do a deed in lieu of foreclosure
is it a purchase money mortgage or not which affects if the can go for a default judgement
transferring the assets might get you in trouble due to a fraudulent conveyance.
do a short sale. if all it takes is repair and a sect 8 tenant.
Also, I am in Pennsylvania, if that helps with laws and details.
To me you would seem pretty judgement proof and I would not do after you for a default judgement,
Also, check out how BK law works in PA. Do you have a homestead exemption and is it larger due you disability.
The BK judge might just say hey... the 500 in rent is what the guy is living off of. Leave that property alone. This other one... Yes bank you can foreclose.
SSI is a bit to hard to qualify for. He should go for general assistance. LOL.
Catia,
First you need to understand the foreclosure process for PA.
1. Search the web for FORECLOSURE LAWS PA
2. Understand the PA is a judicial state, meaning the lender has to take you to court.
Since it appears that foreclosures are way up in your county, a court date might be months off in the future (10+ from what I read). Ask your neighbor how long it took them to get through the court system. Another thing to consider is if there are so many foreclosures in your neighborhood the bank sometimes will wait longer to foreclosure giving time for their REOs to be sold. And since you stated that the REO’s are going for 9K I think the bank just might be willing to do a short sale. Why? It cost them money to do a foreclosure and it appears that they are not recovering much. So I would most definitely follow the advice of others here to do a short sale. Remember if the bank agrees with a short sale to also include NO deficiency judgment of the remaining amount due on the loan. If you’re successful in a short sale you still might have to pay taxes to the IRS – check with a professional tax preparer or CPA for tax advice.
As to you putting a mortgage on your rental property to shield it from a deficiency judgment, do it quickly before you get 2 months behind on payments for this property.
Question: when you took out this bank loan was the bank aware of your other 2 properties?
I do believe that they were. So the question is how not to commit fraud and protect/keep your other 2 properties.
1. Move into one of your other properties and homestead it – let it be commonly known that you are moving because of the crime and your health and safety. (Include this statement on your homestead paper work). Keep all newspaper articles and date/time of the police coming in and closing down your street. Use this for your short sale also.
2. It stated that you have someone that will give you a loan to make repairs on these 2 properties. Good; now you need to split the amount between the 2 properties, and on the one that you are going to use as your new homestead place a vendor’s lien. On the other property create a land trust with you and your money person as beneficiaries (you are selling 50% interest in this property and becoming partners). The money person would also have a vendor’s lien on this property. You will have the right to buy out the money person after the lien is paid off for a price to be determined at a later date/time.
I have used/done this in the past in California and Texas with great success. This is only my opinon/experience.
Vinnie
(Good advice but terrible spelling and punctuation- almost unreadable before editing... Chris)
[ Edited by ypochris on Date 07/27/2007 ]
If the lender knows you are giving cash back to the buyer, it is legal. If the lender does not know, it is not "skirting" legality, it is loan fraud. Even though people do in fact do it all the time.
Chris
The more we hear the more it reconfirms what many of us suspected...all the properties should be sold and you should start over...with any luck you will end up even.
Click on his profile, then look for the link that says "Private Message ****"
The comments on mortgage fraud are related to the cash back idea the broker proposed to you, not your actions. There is nothing wrong with taking the money from a cash out mortgage and buying another house with it; that is my business plan. But it is somewhat likely that the house you bought with the money will be attached if necessary to pay back the mortgage.
Chris