InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Store Foreclosure Codes 50 State Resource Data Foreclosure Glossary Foreclosure Statistics 60+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Which one to use AITD or ILC? Please elaborate Posted by Ca Ley on September 08, 2004 at 2:27 PM A friend Rob Patton, referred me to this board, and I’ve been browsing it. The content is excellent. Ward, thanks for making it available. I’m seller financing a house that I just bought with conventional financing (my very fist deal ;-) Three questions: I’m deciding whether to use an AITD or an ILC (installment land contract) Ward, you said in a previous post: >Use the AITD. It’s a lot easier to sell and is the right thing to do. 1. Can you elaborate some more on the advantages of an AITD? What I’ve heard, the argument against an ILC is that in case of buyer defaults, because of the equitable interest, you can not do a regular foreclosure, you have to do a judicial foreclosure, which takes 2 years and buyer lives there for free meantime (if he knows the law) But my mentor prefers an ILC, because the deed isn’t recorded and the bank wouldn’t find out and trigger the due on sale clause. If buyer defaults, she just offers money for them to walk and leave the place in good condition, and thus she avoids having to foreclose on them. The taxes on this property aren’t escrowed, so the escrow company said that even if I use an AITD, the bank would never find out. I also read somewhere in your board that the banks do not have the staff at the county recorded to monitor when deeds transfer hands. 2. Have anyone done an AITD, did the bank call the loan due? 3. With an AITD, there is no need to put the property in a land trust, right? Since the deed will be transferred to buyer anyway. My Re mentor is a student of Bill Bronchick and she totally believes in the ILC These were my questions to her and he answers: Pre-paid legal said if I use the ILC, the buyer doesn't get the tax deduction Mentor: a lie Me: I want the buyer to get the tax deduction, since the payment is so high. The PPL lawyer said the AITD would be a safer bet, especially due to the regular foreclosure process. Mentor: they don't know what they are talking about Me: I know you don't like the AITD, other investors I've been asking about said the banks don't have staff at the county records to find out if the deed transferred name, so they said the probability of banks calling the loan due due to an AITD is slim. So, If I use an AITD, and the deed transfer names, then is there a need to put the property in trust now? Mentor: the bank will start checking aitds when the rates go up more. You want to live dangerously go ahead. Why are you bothering to ask for my advice? You go everywhere else for info? Follow Ups: Use the AITD... Ward-CA- 5:45 PM, 09/09/04 (1) Re: Use the AITD... kris 8:13 PM, 04/20/11 (0) Post a Followup: Name : E-Mail : Subject : Comments: : A friend Rob Patton, referred me to this board, and I’ve been browsing it. The content is excellent. Ward, thanks for making it available. : I’m seller financing a house that I just bought with conventional financing (my very fist deal ;-) : Three questions: : I’m deciding whether to use an AITD or an ILC (installment land contract) : Ward, you said in a previous post: : >Use the AITD. It’s a lot easier to sell and is the right thing to do. : 1. Can you elaborate some more on the advantages of an AITD? : What I’ve heard, the argument against an ILC is that in case of buyer defaults, because of the equitable interest, you can not do a regular foreclosure, you have to do a judicial foreclosure, which takes 2 years and buyer lives there for free meantime (if he knows the law) : But my mentor prefers an ILC, because the deed isn’t recorded and the bank wouldn’t find out and trigger the due on sale clause. If buyer defaults, she just offers money for them to walk and leave the place in good condition, and thus she avoids having to foreclose on them. : The taxes on this property aren’t escrowed, so the escrow company said that even if I use an AITD, the bank would never find out. : I also read somewhere in your board that the banks do not have the staff at the county recorded to monitor when deeds transfer hands. : 2. Have anyone done an AITD, did the bank call the loan due? : 3. With an AITD, there is no need to put the property in a land trust, right? Since the deed will be transferred to buyer anyway. : My Re mentor is a student of Bill Bronchick and she totally believes in the ILC : These were my questions to her and he answers: : Pre-paid legal said if I use the ILC, the buyer doesn't get the tax deduction : Mentor: a lie : Me: I want the buyer to get the tax deduction, since the payment is so high. : : The PPL lawyer said the AITD would be a safer bet, especially due to the regular foreclosure process. : Mentor: they don't know what they are talking about : Me: I know you don't like the AITD, other investors I've been asking about said the banks don't have staff at the county records to find out if the deed transferred name, so they said the probability of banks calling the loan due due to an AITD is slim. : So, If I use an AITD, and the deed transfer names, then is there a need to put the property in trust now? : : Mentor: the bank will start checking aitds when the rates go up more. You want to live dangerously go ahead. : : Why are you bothering to ask for my advice? You go everywhere else for info? Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction. Read our privacy policy.

Copyright © 1997-2004, InnoVest Resource Management
http://www.foreclosureforum.com

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455