Posted by B.L.Renfrow on June 29, 2003 at 13:20:57:
A trust? To accomplish what? That’s two completely different issues. Transferring title into a trust isn’t going to get the owner the money she needs to pay the arrears and back taxes, nor is it going to keep the lender from foreclosing.
In her original post, the poster was asking how to come up with the money needed to prevent foreclosure, since she didn’t have it and there was no equity. The reason I suggested selling on a land contract was so she could get a large enough downpayment from a buyer to cover the arrears and reinstate the loan.
If I were to BUY this property on a land contract given the situation, I might want to take title in a trust, in order to prevent attachment of other liens or judgments due to the seller’s financial problems. But transferring title into a trust now would do absolutely nothing to help the owner.
deed in lieu HELP - Posted by barb
Posted by barb on June 27, 2003 at 17:27:25:
I’m in a pickle. Come up with 3 months back payments and taxes in access of $5000 or go into foreclosure. There’s no equity in this place and I’ve had no luck trying to sell it at rock bottom. Can’t go any lower in price. And can’t really come up with the money. Should I give the deed in lieu of foreclosure? Is this going to look just as bad on my credit report as a foreclosure? Do lenders like going this route instead of a foreclosure?
Re: deed in lieu HELP - Posted by Kristine-CA
Posted by Kristine-CA on June 28, 2003 at 24:01:10:
Barb: who’s the lender? There are many banks and national lenders that will not accept a deed in lieu of. But many private note holders will.
Are the taxes due right this minute or just the 3 back payments? The reason I ask is that I get calls from sellers that sometimes do not understand property taxes for their area very well. Are your taxes included in your mortgage payment or are you paying them?
Could you lease/option or sell on a wrap with 5K down? Is there any cash flow at all? There is probably a buyer somewhere if it is.
Don’t give up yet. There are many people here who will have good ideas if you post some more details.
Re: deed in lieu HELP - Posted by B.L.Renfrow
Posted by B.L.Renfrow on June 27, 2003 at 21:32:53:
Yes, it will have pretty much the same impact as a foreclosure on your credit report.
And most lenders DON’T want to go this route instead of foreclosing because if they accept a deed in lieu, they run the risk of getting a property with junior liens or judgments attached. Usually they will insist on running it through a foreclosure to be sure they get clear title.
What about offering it for sale with owner financing on a land contract? Could you get a large enough downpayment that way to cover the amount owed?
Re: deed in lieu HELP - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on June 27, 2003 at 20:34:22:
You might try dropping the price even lower and paying some of the money to the lender to pay off your loan.
You might get a sales contract at a price lower than the payoff amount and ask the lender to do a “short sale.”
Have you tried to sell it with a lease-option or other seller financing?
I’ve never heard that a deed in lieu has to be for only owner-occupied properties. That is probably one of those 1/3 of things you hear that are wrong.
Good InvestingRon Starr****
Also… - Posted by barb
Posted by barb on June 27, 2003 at 20:24:29:
This is a rental property. I read somewhere on line that in order to do a deed in lieu it must be an owner occupied property. Is this so?
Re: deed in lieu HELP - Posted by barb
Posted by barb on June 28, 2003 at 08:43:45:
The lender is countrywide. There is about only about 100 in cashflow. Alot of upkeep on this one. It is a older three unit. I would love to sell on a landcontract but how do I do that without countrywide calling the loan due?
landcontract? - Posted by barb
Posted by barb on June 28, 2003 at 08:45:52:
Can I sell on landcontract when I already have it mortgaged through contrywide?
Re: landcontract? - Posted by B.L.Renfrow
Posted by B.L.Renfrow on June 28, 2003 at 08:57:17:
Sure. It’s called a wrap (or wraparound). Do a search in the archives for those terms for more details.
Essentially, the existing loan is left in place and the new loan (your buyer’s land contract) is “wrapped” around it. Yes, it does violate the DOS clause, but it sure beats losing it in foreclosure. Plus, if the land contract is not recorded by the buyer, the lender is not too likely to find out, unless you tell them.
Re: landcontract? - Posted by John Merchant
Posted by John Merchant on June 28, 2003 at 16:34:34:
Plus, if the land contract is not recorded by the buyer, the lender is not too likely to find out, unless you tell them.
And it WON’T be recorded if your contract is not notarized, as, to my knowledge, no state’s law will let you record anything without a Notary’s Acknowledgement…so even if the Buyer wanted to record, he’d be unable to do so.
Re: landcontract? - Posted by keith hutson
Posted by keith hutson on June 28, 2003 at 23:25:05:
can this property be sold in a trust? This is another way, it seems would work.
"Thinking out loud here