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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Taking title subject to Posted by Ward-CA- on June 10, 2003 at 7:46 PM In Reply to: Taking title subject to existing loans posted by John-CA on June 10, 2003 at 0:41 AM : Ward, : Can you help out? : My question pertains to how can you take over and change title subject to existing loans after EPA & notice of cancellation and Grant Deed has been signed with seller? The procedure is for my primary residence and not for investment purposes. : Does the procedure actually changes the name title to yours if you are the buyer and how long does it take for title to be changed once recorded? and what about the lender? They will find out very soon once it's recorded and may call loan due if it's not assumable and would I need to verify first with homeowner? ( Of course I am going to refi but that takes 1-2months total) : And how can I open escrow, and put a contingency "Clean Title" clause when I know there is still a lien on the property so there it is not a clean title knowingly. And can I purchase Title insurance in this type of deal? : My biggest confusion is how can lender accept or is it legal to take title, subject to existing loans? The lender must want to check your credit obviously. : Lastly, how do you actually reinstate the back taxes and payments? do you have to send cashiers check through escrow or physically mail the check yourself ? : John =•=•=•=•=•=•=•=•=•=•= John, You probably know, since the creation of the Garn—St. Germain Depository Institutions Act of 1982, that the due-on-sale clause in all trust deeds and mortgages are enforceable by all lenders. Therefore, the existing liens that most of us are taking title subject to, could be called in early by their lenders simply because there has been a change in the ownership of the property. To make it harder for lenders to discover the ownership change we disguise it by transfering it to a title holding trust that’s titled in the borrower’s name with us as the trustee. Unbeknownst to the lender we buy the trust from the owners via a non-recorded assignment of beneficial interest in trust. Most people assume the trust is the owner’s living trust and make no further inquiries about it. We don’t open escrow or get any additional title insurance. We pay up the delinquent property taxes by direct payment to the tax collector. There’s nothing illegal taking title to real property subject to its existing financing. If you need convincing on this angle just click on the link below. No due-on-sale jail.. Follow Ups: Re: Taking title subject to...Joint Venture? Jim 11:00 AM, 06/11/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, : : Can you help out? : : My question pertains to how can you take over and change title subject to existing loans after EPA & notice of cancellation and Grant Deed has been signed with seller? The procedure is for my primary residence and not for investment purposes. : : Does the procedure actually changes the name title to yours if you are the buyer and how long does it take for title to be changed once recorded? and what about the lender? They will find out very soon once it's recorded and may call loan due if it's not assumable and would I need to verify first with homeowner? ( Of course I am going to refi but that takes 1-2months total) : : And how can I open escrow, and put a contingency "Clean Title" clause when I know there is still a lien on the property so there it is not a clean title knowingly. And can I purchase Title insurance in this type of deal? : : My biggest confusion is how can lender accept or is it legal to take title, subject to existing loans? The lender must want to check your credit obviously. : : Lastly, how do you actually reinstate the back taxes and payments? do you have to send cashiers check through escrow or physically mail the check yourself ? : : John : =•=•=•=•=•=•=•=•=•=•= : John, : You probably know, since the creation of the Garn—St. Germain Depository Institutions Act of 1982, that the due-on-sale clause in all trust deeds and mortgages are enforceable by all lenders. : Therefore, the existing liens that most of us are taking title subject to, could be called in early by their lenders simply because there has been a change in the ownership of the property. : To make it harder for lenders to discover the ownership change we disguise it by transfering it to a title holding trust that’s titled in the borrower’s name with us as the trustee. Unbeknownst to the lender we buy the trust from the owners via a non-recorded assignment of beneficial interest in trust. : Most people assume the trust is the owner’s living trust and make no further inquiries about it. : We don’t open escrow or get any additional title insurance. We pay up the delinquent property taxes by direct payment to the tax collector. : There’s nothing illegal taking title to real property subject to its existing financing. If you need convincing on this angle just click on the link below. 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

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