Re: land trust during equity buyout
Posted by steele in minnesota on March 01, 2008 at 18:23:06:
In Reply to: Re: land trust during equity buyout
Posted by Julio Martinez-Clark on February 28, 2008 at 12:03:34:
Not a member either but I would not go so far as to use wording that suggests unethical or immoral actions in using the land trust.
Ask the lenders (privately, of course)if they would rather have someone/anyone making the mortgage payments as opposed to having a house go into foreclosure and you know how they will answer.
I do know many in the investing field who use "subject to" on a regular basis. Some don't even use a land trust.
Remember that the due on sale clause is not an automatic. The wording states that the lender MAY use it. Not that they WILL use it.
It seems most of the time they find a subsitute borrower just fine as long as the payments are caught back up and made on a continuing basis.
Doesn't mean that there is can't be the occasional funny business. It does happen. The seller will need to be comfortable with the situation.
This is not a clear cut case of right and wrong. One of the many cases of gray....
Follow Ups:
