Purchase Utilizing A Trust
I have been told that I can save lender/closing fees by using a trust purchase. I am not familiar with this, and am buying from a relative, Therefore, I need to know if there are benefits for both parties in this form of real estate transaction. Also, what are the downsides for each party?
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I am not sure where you got this information and if you would please share where you got the information that a trust purchase can save in fees.
A trust purchase will normally cost more in fees due to its document recordings and setup.
Many have used trust purchases to hide ownership and or circumvent the due on sale clause and this is improper use of a trust purchase. See http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=623
Setting up a trust purchase is a little complicated and can be somewhat encumbersom if you do not know more about it and at this point I see no need for you to do this.
I would recommend just go through a regular purchase.
See the following links for more information on this subject:
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=233
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=181
http://www.thecreativeinvestor.com/modules.php?name=News&file=article&articleid=107
I use trusts for the purpose of simply protecting my assets, some lease back purchase options and in cases where I wish to help preforeclosure homeowners where I wish to bring their mortgage current and provide them 50% equitable interest.
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