what’s the best way to have a property deeded over to my name. a friend is going through a divorce and 2 months behind on his payment. I offer to pay for the 2 months and bring him to current status on his payment if he will deed over the property to me. He said yes, he just want’s out and keep his credit in good standing. I want to take over the property and sell it myself.
what documents do I need to do this? do I need a real estate lawyer? what about the Due on sale clause?
My first question is, Is the soon to be ex wife going to sign off on the deed as well. If he is married he can not transfer his interest to someone else with out her signature waiving her dower rights.
If she is not willing to sign then you really can’t do anything until the divorce is final.
I hope this part helps.
Alan281,
The most common way to do this is to use a Land Trust.
If you have never done one then post the question in the Sub2, Lease Option Forum and they should be able to direct you to get the appropriate forms.
I see your signature says that you are a realtor and a loan officer… Why did you do both? Just curious
I just copied this answer from a recent post in the Sub2 Forums.
They were talking about how not to trigger the due on sale clause in a sub2 deal.
"If you really want to protect yourself. Leave his insurance in place. Get a new insurance policy. Have him deed you the property into a land trust. Have him sign a trust agreement with him as the beneficiary of the trust. Then have him sign an assignment of beneficial interest to you.
The bank can’t call a loan due when it is transferred into a land trust for the benefit of the mortgagor…the seller, that’s federal law. Even thou your really the beneficiary… the lender won’t know unless someone has a big mouth since the trust agreement and your assignment contract are never recorded."
I hope this helps.
Ramona
Is it easy to set up a land trust? cost? can you direct me to some info.
I started as a realtor then decided to get my LO license because I wanted to learn the mortgage side of the business. I think it’s a natural progression in developing trust and credential from your clients. When they approach me they will usually need either a realtor or a loan, so I would offer them both. As long as I disclosed it, my broker have no problem some bigger brokers don’t like doing it. It’s no different than a builder offering financing.
Thanks Alan,
I asked because I am a loan originator and I am getting my realtors license. How ironic… I feel the same way. I want to be able to offer my knowledge on both sides but I will stay full time as an originator. I wanted to get my license for realestate so that I could list my own property and have access to comps etc.
I think it is a good strategy.
You can usually do the land trust yourself if you have the right forms. I do not have all of the correct ones yet but i am creating them as I go. I have emailed a few people about getting set up with all the correct docs and I am really excited to use this strategy. I think it will work great. I’ll keep you posted on my success.
Hi guys
Ramona, thanks for info; very useful.
Question: By transfering the deed through a land trust, can the lenders of the previous owners attach more liens to the subject property? (Since it is not recorded)
