Posted by Merrick on November 17, 2006 at 13:28:20:
Are you already on title? If so, the chain-of-title has already been broken, not much you can do now but find a lender that doesn’t care.
Keep in mind I’m very new myself, but this is how I plan on structuring any similar deals I run across. I will have the seller deed the property to a land trust with the himself as the beneficiary. He will sign a 100% assignment of beneficial interest to me which gives me control of the property (and protects the property from additional liens after you record this deed). In the first closing the trust will buy the property from the seller, paying off the lender (the agreed discount). In the second closing the trust will sell the property to my end buyer, netting me the difference. Since the original seller essentially deeded the property to himself through the trust, there was no change of title for the end lender to get upset about, and as far as the seller’s lender pulling the deal, they should never see the 2nd HUD, the only part of the deal that concerns them is the first closing… “Fiduciary Responsibility.” lol
Anyway, that’s how I plan on doing things, but there are still some holes I have to fill, like who to make the trustee of the land trust.
All the Best,
Merrick