Land Trust For Owner Financing

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Has anyone heard of using a land trust for offering owner financing without tripping the DOS clause of the underlying mortgage.

Brenda

Comments(2)

  • JohnMerchant5th January, 2004

    Wow! What a concept!

    Seriously, have you not done any reading of the jillion articles and comments on this site about exactly that?

    It'd be my guess that about 60% of all the readers of this site absolutely know about the use of a trust, as per Fed Law, to legally avoid DOS affects. And many have used such knowledg for years in accumulating and profiting on lots of RE.

  • bgrossnickle5th January, 2004

    I am still learning.

    I want to use land trust similar to how others use a land contract. I have heard of people discussing this, but know of no one who actually does it. Do you? Closest I have seen is one hard money lender buys the property in land trust, has the lawyer as trustee who can not do anything without the direction of the primary benficiary, the hard money lender who is the primary benficiary, and then the borrower who is secondary beneficary. In the land trust it clearly states that the secondary beneficary has controlling interest provided he adheres to the conditions of the Trust. The trust spells out many exact details and references the promissary note. Secondary loses his benefical interest if he does not adhere to the conditions of the trust.

    No, I have not read a message that exactly discusses this. But I am new to the forum and do not know how to use the search. But I will learn.

    Thanks

    Brenda

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