Posted by Bronchick on December 14, 1998 at 13:18:28:
Since a “freely assumable” loan is one which contains no due on sale provision, no one really has to assume obligation for the note (by signing an "assumption agreement). Thus, the trust can sign for the note without the personal liability of the trustee or the beneficiary. I have had some argument with lenders, but challenged them to show me a law that says otherwise. No response.
Land Trusts - Posted by Robert
Posted by Robert on December 10, 1998 at 20:28:04:
If I put my real estate holdings in a land trust will financing from an institutional lender still show up on my credit report? If so are there any ways or methods for it not to?
Thanks,
Robert
Re: Land Trusts - Posted by Bronchick
Posted by Bronchick on December 11, 1998 at 14:04:15:
Existing financial will still show up on your credit report, but FHA/VA assumable loans can be “assumed” by the trust and removed from your personal credit report.
Re: Land Trusts - Posted by Bill Gatten
Posted by Bill Gatten on December 12, 1998 at 19:18:50:
Bill,
In a situation like that – where the land trust assumed the loan – wouldn’t the lender want the beneficiary/ies to guarantee the loan? And if so wouln’t this keep the credit on their record? I would have presumed the VA was no different in this regard thn the others (learn something new every day).
I know that the lender would be better off, security wise, with an assignment of beneficiary interest in lieu of a title interest in the property (i.e., no public notification, publication and remdemption period regulation to contend with in foreclosure); but I haven;'t had any luck dealing with bankers on the issue. I never thought about it with respect to VA take-overs. Nice.