Is this a good Pac trust deal? - Posted by Jason_VA

import · October 24, 2000, 10:54am

Posted by Colleen on October 24, 2000 at 18:07:25:

Can somebody please give me a quick run-down on how and who should sign what.

Do I sign the purchase agreement myself, then have my Trustee sign Deed from seller and take title in the name of my trust??
Does Trustee attend closing??
Then when all that is done do I have my Trustee sign a Warranty Deed to Trustee??

I am just a newbie, can you tell? Anything else I missed in order to get title into a Land Trust??

Any response would be greatly appreciated!!

CkMill

import · October 24, 2000, 10:54am

Is this a good Pac trust deal? - Posted by Jason_VA

Posted by Jason_VA on October 24, 2000 at 10:54:33:

Brother is selling his townhouse that he bought for an intermediate living. hes been there two months. Just wants to give it to me and me take over payments. hes a little bit concerned about Due on Sale, so i suggested pactrust.
There one mortgage and a line of credit on the house. (they were duped into taking a 20% line of credit, so they wouldnt have to pay PMI . .dont ask . .)

the monthly payment is $1180, ill live in one room, rent out other three.
Sale price is $132950
What can we expect in “closing costs” associated in creating the trust.
Any tips from those that have done one before?
Thanks a bunch guys,
-Jason

import · October 24, 2000, 5:09pm

Re: Is this a good Pac trust deal? - Posted by Marty Weisberg

Posted by Marty Weisberg on October 24, 2000 at 17:09:28:

Jason,

As far as the Line of credit against the house, I believe that you can have that frozen at the amount it is right now. If you want, you can have your brother make the payments on that loan to the trustee and secure it with a UCC filing. But it doesn’t sound like that is a concern of yours. As Lori says most any deal can be a PACTrust deal.

As for the expense it will be about 2% of property value plus contingency fund plus whatever you would like up front for yourself.

From tyour brief description I would say this is an ideal PACTrust deal.

Marty

import · October 24, 2000, 12:53pm

Re: Is this a good Pac trust deal? - Posted by dewCO

Posted by dewCO on October 24, 2000 at 12:53:50:

Lori is correct, basically any deal can be a PACTrust deal. What you need to careful of in this sceanrio would seem to be the “live” line of credit. Not sure how Bill addresses that. Why not post on his site at cal-equity.com and ask the question. Any time you have an open line of credit the owner can keep on using it.

You also don’t have enough numbers here to know how strong a deal this is, but one of the main things a PACTrust does is provide better protection against the due on sale clause (because ther is no transfer of ownership!!!).

import · October 24, 2000, 12:18pm

Re: I just got back form Bill Gatten in Dallas - Posted by Lori Samson

Posted by Lori Samson on October 24, 2000 at 12:18:38:

… And I think that most any deal can be a PAC Trust deal. I really liked his seminar but boy, can he talk over my little blond head! I have to commend you if you already understand it! I am still trying to! I got most of it but I had some trouble understanding some of his concepts. He was an English professor… go figure!

Lori