Land Trusts
I'm considering setting up a land trust for a new single family rental house my wife and I own inFlorida. I contacted the lender and they indicated they would not allow us to quit claim our interest to a land trust in which my wife and I have the beneficial interest by way of a family limited partnership of which we own and have a 50% interest in each.
Question 1: Can the lender excercise the due on sale clause as it seems the garn-st germain act would prevent them from doing so?
Question 2: Should I go ahead without their appoval?
I have contacted several insurance brokers in Florida and the insurance rates for a land trust are significantly higher than under our individual names.
Question 3: Any recomendations for obtaining insurance and reasonable rates?
Question 4: Would we be required to pay a transfer tax in the state of Florida, Lee County?
From my personal experience, most lenders I have dealt with don't really care where the money comes from as long as they get paid.
It would seem that the lender would find out about it though in that the insurance converage would show the new insured ( xyz Land Trust). Do you think they would just ignore it if payments are current?