Doing "Subject to" in NC? - Posted by Mark Sorrells

Posted by Stacy (AZ) on July 17, 2001 at 19:00:25:

You’re having a problem with confusing “Trust Deeds” with “Deeds”. Two different beasts.

A deed conveys ownership. It’s the one and only gold nugget, the big kahuna. This is the document used to convey the property into a “land trust”, which is simply a title holding device. Whoever owns the deed, owns the property.

A deed of trust, or trust deed, is a method of attaching, or securing an agreement, such as a promissory note, to the property. A trust deed remains unchanged when taking properties over subject-to. However, the deed gets changed to convey ownershipo of the property to the Land Trust. Who owns the land trust? The beneficiary…which will be you once the seller assigns his beneficial interest to you.

There! That should confuse the heck out of you. (smile) I over-simplified to try to make it easier to understand, and probably made it worse. Oh well.

Stacy

Doing “Subject to” in NC? - Posted by Mark Sorrells

Posted by Mark Sorrells on July 17, 2001 at 18:27:10:

In regards to 'Subject To" sales …I talked with an real estate attorney in North Carolina, where I live, and he said that we issue Deeds of Trust for property purchasers. Transfering those Deeds of Trust to another Trust triggers a new mortagage, so the Subject To process won’t work. Can anyone elaborate on this?? Is anyone doing Subject To in NC?? And since I live in Western North Carolina…can you use it in Tennessee, Virginia or South Carolina??
Thank you for your advice,
Mark Sorrells