Posted by Bill Gatten on June 30, 1999 at 15:43:27:
One solution:
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Place property in land trust in current owner’s name.
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Bring all payments current (be sure to get reinstatement letter from the lender).
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Become a co-beneficiary in the owner’s land trust with full Power of Attorney.
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Advertise for buyer (i.e, NO DOWN, NO BANK QUAL, AS LITTLE AS 3 PAYMENTS AND CLOS CLOSTS MOVE YOU IN)
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When propsects call you say: "I have this little house over there here on — street, which is currently in a Trust. And I’m just looking for someone who can afford the afford the closings costs and monthly payments to just give it to. The only thing I want out of it to have you refinance it in a few years and, at that time, if there’s been any appreciation… I’d like to split it with you.
In the above scenario, you can adjust the up-fron money to what the market will bear and what’s required to compensate you for some or all of the repair work that needs to be done. (Perhaps just get the curb appeal up (trim and rose bushes) and make the rest of the refurbishment a part of the Resident Beneficiary’s “sweat equity” obligation).
You could also have an agreement with the Resident Beneficiary (the guy making all the payments) to cooperate in a Re-Fi for your benefit later on, if you wish to pull out some cash (e.g., escrow opened, trust revoked, property refinanced, then property placed back into the trust).
Bill