owner finance and refinance - Posted by howell

Posted by Michael Morrongiello on January 23, 2000 at 21:07:00:

It would be feasible for a buyer to refinance a property if they could show some length of time ( or seasoning) of ownership to it. This might involved the buyer of the beneficial interest in the trust to show his/her purchase of that interest. However the real difficulty I see is that many traditonal mortgage lenders require a property to be taken OUT of a trust and also require some form of personal and individual liability to repay the debt. This means that the new buyer may have to deed the property OUT of the trust to themselves individually and also execute as such.

Unless there is some compelling reason for you to keep the trust alive (perhaps a due on sale clause, etc.) If you are going to sell the property to these buyers WHY not simply have the trustee of the trust deed out to them as individuals. This will make it a lot simpler and easier for them to accomplish a refinancing in the future.

Michael Morrongiello

owner finance and refinance - Posted by howell

Posted by howell on January 23, 2000 at 18:15:16:

If i put my property into a trust and sell my beneficial interest to someone, could they then go to a lender and refinance? Any suggestions?