Subject to closing process

I have a deal that came in from my foreclosure marketing leads
The seller is $7k behind on payments i got the authorization filled out faxed it over and was able to speak with the bank
seller has agreed to deed the property over to me to stop foreclosure that is set for Oct 4th, 2016 auction date.
But what i’m confused on is do i have to close with a title company or do i just get PSA signed & all docs notarized as well as affidavit and not go through title for closing??
I called a title company and was told that the loan would have to be paid off in full…
can someone please help me ?

Technically you can close them yourself but I wouldn’t recommend it if you’ve haven’t closed many deals yet.

Most title companies/lawyers are clueless when it comes to creative real estate. You need to find one that handles creative transactions. I found mine by asking around at my local REIA. Call around some of your investor friends and ask them who can handle this deal. If you don’t know any investors, call some of the bandit signs and ask them.

Luke9686 thank you for your feedback i will try find someone with your approach

But also wanted to ask you have you ever closed on any sub2 deals yourself ? because from my knowledge you can take the title into a land trust with the homeowner as the beneficiary & then homeowner signs over beneficial interest to you, you will then be the trustee or name ur LLC as the trustee to avoid due on sale clause

are you familiar with this kind of creative investor niche?

You don’t need to name the seller as the beneficiary. That’s an extra, unnecessary step. Otherwise, you have a good plan.

Title companies will normally not close for you without also charging you for title insurance. The other problem for the title company is not being familiar with the terms “subject to.” If you were to say ‘All Inclusive Trust Deed, or Mortgage Wrap,’ they would probably understand.

One thing to remember, you want to routinely describe the transaction as what you’re doing, not by “jargon.” Never say “sub2” with a title company (or a seller for that matter). Just tell them what you want to do, and let them figure out what to call it.

You might introduce the idea by saying something like, "I want to do a modified, all-inclusive trust deed, where I wrap the seller’s equity with his existing loan into one note, and transfer the title, complete, into my trust. They still might not get it, since AITD’s are rare, but the concept term has been around a while.

NOTE: AITD’s were common in avoiding the due on sale clause, because there was only a 90% transfer of title to the buyer, but not a complete transfer. Now ‘any’ transfer of equitable interest gives the lender the right to call the loan, so a partial transfer doesn’t help anything. Might as well just get the whole title transferred.



Do you have any recommendations for learning about trusts? I have Jack Shea’s book in the mail, any others you recommend?

I used an attorney to put mine together. However, you can just copy and past after that. That’s what I would recommend.

You can either spend $1,000 on generic legal training, or $1,000 on an attorney who must defend his work. I would start with the attorney. A real estate trust attorney, not a divorce attorney, etc.

Bill Gatten and/or William Bronchik are excellent sources for trust agreements. I think Bronchik is one of the course sellers on this forum.

I have never heard of the source you mentioned, but I’m not really ‘up’ on that aspect since I already have my own documents. Never mind that the recording process is different in every state. I mean California is constantly changing and modifying the recording process (making it more and more intrusive and complicated).

Jay thanx a bunch!!! and i signed up & got your free report as well…

Go to Chicago Title at the following link and you will find all the trust forms you will ever need.