Due On Sale - Land Trust
Someone told me that the exception to the 'due on sale' clause through putting title into a land trust only applies to owner occupied properties. Does any one know if this is true? Is there a way I can put my NOO property title into a land trust or LLC without the loan being called due?
I cannot tell you how, but I can tell you that many investors have all of there properties under land trust, so it sounds like a fallacy.
Kyle
SVB:
As Kyle said there isn't any law against it and considering the fact your mortgage is an N.O.O. loan still deosn't represent a problem.
go ahead GET THAT DEED OUT OF YOUR NAME and into a TRUST!
Move Quickly!!!
Derrick
svbartkus,
Glad to meet you.
If this is your property you want a Living Trust, this is acceptable to lenders whether owner occupied or not.
Don't confuse a Land Trust with a Living Trust. Your attorney should be able to advise you on the benefits of establishing a Living Trust for your protection.
John $Cash$ Locke
What does NOO mean?
NOO = Non-Owner Occupied
William Tingle
WilliamGA
I must say the utilization of a few letters for a buzz word or saying is trying both to the experienced TCI'er or the Brand new to the Site Person.
I have a problem when people insist on calling the bonnet on my car a hood.
TTFN, Ta Ta For Now. please help me
BTW by the way. FRV, full retail value.
use nice yiddish sayings or create new titles etc.
For example Top Secret now there is an even higher catagory. Burn Before Reading.
I think we should spell them out for a time so we are all on the same page.
Nes Pau? Lucius
SVB:
John$L is Almost near K-Rekt But...
YOu Wrote: Quote:"Is there a way I can put my NOO property title into a land trust or LLC without the loan being called due?"
LAND TRUST is actually a misnomer for the "ILLINOIS Type Title-Holding Trust" which IS A LIVING TRUST!!!
John$L the only difference is that the LAND TRUST holds a REAL PROPERTY's TITLE among it's A$$ETS Owned.
If You and/or Your Atty feel as confused as John$L presumed then I can direct you to a competent legal beagle in Your State to properly set one up for you (that WON'T the Lender's DOS Clause)!
Best of Investing!
Derrick Ali
DerrickAli,
Have you ever contacted a lender of a property you own asked for the proper paperwork to tranfer the property into a Living Trust which is recognized by the Lender?
I have and it isn't just going down an filing and recording without letting the lender know, the Trust is approved by the lender and all paperwork from the lender shows on the lenders records that your property is now in the Living Trust's name. It costs about $1,500 to to it properly.
John $Cash$ Locke
JOHN:
Quote:I have and it isn't just going down an filing and recording without letting the lender know, the Trust is approved by the lender and all paperwork from the lender shows on the lenders records that your property is now in the Living Trust's name. It costs about $1,500 to to it properly.
No argument here but what's your point???
said nothing about simplicity only TECHNICALLY:A "Land" Trist is a Living Trust with title-holding components other than that THEY ARE Essentially the SAME (a Trust).
I've done this as recent as last month---Didn't cost me $1500 nor did it violate the Lender's DOS.
But I'll ask my Atty if she did everyhing she was supposed to b/c I paid less than $700 Bank is notified?
So again to answer you Q. YES I do believe I've done one (out of a hundred or so.)
Happy Investing to you!
Derrick
I imagine that each state is different regarding its trust requirements. There are many attorneys (some on this site) that are selling do ot yourself kits for putting property into a Land Trust.
Most of this can be done cheaply (do it yourself <$100) and no laws are broken.
I would be interested in the experiences of others with land trusts. I might just be the lucky one, I am setting up one next week.
Reflecting further, I am sure that John could answer this one well. I have never heard of anyone that had the DOS clause invoked on them except for Carleton Sheets ( he says only once).
I have financed property as owner occupied and then rented it out for 4 years with out ever living in it. (I changed my mind after purchase and divorce).
There is a lot of difference between what a bank can do and will do.
AND IT IS NOT ILLEGAL! so what is the worry?
Derrick,
My point is there are many reasons for
trusts, asset protection being one of them, which is a little more indepth than just making up a trust, so I recommend contacting an attorney who will make sure the individual and his business and his family are protected properly.
This is a partial quote from you "defining the PACT/NEHTrust...which takes VOLUMES only to scratch the surface..."
I am not arguing against trusts I just firgue if it takes volumes to scratch the surface of your trusts, I would be much better off having an attorney in my state prepare one that is state specific and the attorney could explain why he prepared it for me after we discussed my specific needs.
This particular case I believe the person has the loan in their name, creative investing trusts are a different matter.
Derrick it is always a pleasure to see your smiling face, you haven't been around much since the last time you gave advice on trusts. I still have the link if you have forgotten, I could post it again or you could just not bring me into your posts.
John $Cash$ Locke
I am aware that this is absolutely outside the topic, but.... since Lucius has been in France (I know, it has been a long time ago) and presumably knows some French:
Nes Pau? Lucius
I cannot help but correct his French, because the above is very phonetic!
It should be: n'est-ce pas?
I know, I am being mean, but sometimes it is just fun being mean!
Ladybug