Sub2: how do you get around the banks 90days on title?

General Real Estate Investing
1

:banghead

picked up a sub2 property several months ago, ready to put on market now since rehab has been completed. Property is still in originals homeowners name; have power of atty and grant deed to us.

i have spoken to many banks and they info me that they want the seller to be on title for at least 90 days. (meaning us)

is it wise to put the property into a trust and make us the sole beneficiary?? or what is the way ???

thanks for your assistance in advance.

2

That sounds wise to me. I am working on doing just that in putting a sub2 deal into a trust myself…

3

Can anyone out there definitively answer the question as to whether transfer tax must be paid when placing a property into a trust IN PENNSYLVANIA?? I’ve only been able to get answers like “I do it all the time” which is all well and good. I speed all the time and it only costs me money when they catch me. But if I get this wrong, could end up costing me muuuuuch more.

I’m attaching a link to the PA Dept of Revenue’s position on the matter as of Feb 07.

http://www.revenue.state.pa.us/revenue/cwp/view.asp?A=238&Q=268607

4

Open your eyes… call a local CPA the is familiar with you local laws. Plain and Simple.

5

mparker,

 What's with the "open your eyes"?   Who tinkled in your Cheerios?
6

If you are going to take the advice of someone via this blog on such an important tax question in your particular state without consulting a RE tax adviser, you are setting yourself up for failure. Plain and simple.

That is what I meant to “open your eyes”.

7

it is funny to see how easy a question can get “Hi-jacked” and off on to someone elses question…

8

Placing it into a trust won’t solve your problem if you are trying to retail it. The bank that is going to fund, will not fund a trust and will not fund transfer of benefitial interest.

You can sell it on owner financing, lease option it, wait 3 months, or try to find a mortgage broker who works with banks that do not care about seasoning.

9

Great rebut all in :banana[color=black][color=black][color=black][color=black][/color][/color][/color][/color]

10

Confused. You say that you bought property several months ago via sub2, yet lenders want you on title for 90 days. Haven’t you been on title for at least close to 90 days?

Raj