Land Trust Or Grant Deed?
I have a customer that just wants to walk from their home. Worth 245k and owes 238k. From reading it says to do a land trust and sell it for profit to someone with bad credit (ex: loan at 8% and i charge 12% to new buyer). I do not understand land trust agreements. Can I just have them transfer deed to my company and lease option to purchase to someone.
thank you so much.
Gobosh in California
gobosh,
Glad to meet you.
First what is the yearly appreciation in your market, so that you know the buyer will be able to re-finance when the time comes?
Is the current loan an ARM at 8% sounds like it is? Even if it is not this is a very high interest rate to start with.
Buyers with credit hiccups are not totally idiots, you may find one that will pay 12% interest and if you do, start selling land in Florida to go along with this house.
Having a little fun, but these are things you should be thinking about.
John $Cash$ Locke
[addsig]
Thank you for your guys input. much appreciated. I am in a dilema now. hmmmmmm, I need to do a little more back ground. thanks again.