Posted by Mary (CA) on June 08, 2010 at 10:30:04:
Si, lo comprendo. (I’m guessing Italian -but mine’s Esp)
A new level of understanding here. We’ve always used title/escrow company for purchases and sales, though purchased litigation, probate, other guarantees or similar without an escrow. Just never put 2 and 2 together.
Thanks,
Mary
Taking over property / payments? - Posted by Jack
Posted by Jack on May 20, 2010 at 14:22:48:
I have an associate who recently bought a tri-plex. He now wants to get rid of them and is willing to let me take over the payments. Of course the title and loan will still be under his name since I can’t qualify for a new loan. How do I work it so that I can claim the interest deduction, expenses, taxes, etc… Even though legally he will still be the owner and getting the 1099 from the bank each year? Thank you.
Agree w Wm-PA - Posted by John Merchant
Posted by John Merchant on May 21, 2010 at 11:11:17:
Most important in these Sub-To purchases that you get in writing from Seller, his consent for his bank to include your getting regular statements showing status of his loan whenever you want…and his agreement for your making his bank pmts directly to the bank so you know they’ve been made.
I’ve seen buyers get in trouble when they depended on Seller to continue making the bank pmts and he didn’t do so.
On some sub-tos that I’ve done,I’ve had new title (deed) go into an LLC’s name and I then could convey that LLC or units of it to my new buyers if they wanted to continue the LLC. In some states that would by-pass state’s taxing the new deed at recording time.
Also I’ve bought sub-to in name of an LLC w/o my name even appearing so I was truly w/o ANY liability on the RE.
Tax-wise, your LLC would be a pure pass-through for your tax deductions so you’d still get the deductions although the 3plex not even in your name.
Re: Taking over property / payments? - Posted by Wm-PA
Posted by Wm-PA on May 20, 2010 at 22:01:55:
Jack I wouild not make any payments until you get the title into your name and YOU are the legal owner, with the mortgage in his name. Sub2 is what I think you are trying to do, you can now deduct the mortgage interest, pay the loan with a check each month to show you are paying the loan, and pay the bank directly so you are sure the mortgage is being paid.
Wm-Pa
Re: Agree w Wm-PA - Posted by Jack
Posted by Jack on May 21, 2010 at 12:29:58:
You guyes are a great source of knowledge and I really appreciate it. I spoke with a Title company about doing a Sub-To and having a new deed being issued to a LLC. Title said a new Title insurance policy would be needed and asked about the loan payoff? Is this normal? Can’t I just have them transfer deed without worrying about the loan? Do I even need a new title policy? Should I even go through Title co?
Don’t use T Co to close! - Posted by John Merchant
Posted by John Merchant on May 21, 2010 at 12:51:41:
This is exactly why I stopped using T Co to close anything…they want to follow national guidelines and what you or I want is unimportant to them.
Find and use a local stand-alone escrow co or RE lawyer who’ll do things YOUR way, notifying nobody including bank that has the 1st.
First time a T Co tried this with me I actually reached over and grabbed my file off the T Co’s desk and said “thanks but no thanks” and I left.
Re: Don’t use T Co to close! - Posted by Mary (CA)
Posted by Mary (CA) on June 06, 2010 at 20:45:30:
Can you clarify?
If you’re not using title company, are you getting title insurance?
I’m in process of buying Las Vegas property that needs a 2nd lien removed (purportedly paid off in '96), so was thinking of option/lease until quiet title completed then buying subject to 1st. Should I do it with atty beginning to end?
Thanks,
Mary
gtlcafe@yahoo.com
Title&Escrow 2 diff things - Posted by John Merchant
Posted by John Merchant on June 06, 2010 at 21:08:10:
Whatever escrow co or lawyer you use will happily order the title policy from any TITLE co you specify and that T co will deliver it to you or your escrow.
Compri?
They’re two completely different things and functions done by different folks.
Of course the big Title Cos want you to think THEY are the ones (through THEIR escrow officers) to do escrows and closings but they’re not usually the best in my book.
The LV Yellow pages will tell you who the escrow cos in LV are and you want one of the independent ones.