Subject To Question

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If I take a property subject to and put it in a land trust, what's keeping the former owner from taking out a loan on it in the future? Thanks!

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  • myfrogger7th July, 2004
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    An owner cannot take out a mortgage on a property that he/she does not own.

    It is rare that a mortgage will be made directly to a trust and even if it is the bank will require proof that the trust belongs to the seller.

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