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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Making a loan directly to a title holding trust (THT) Posted by Ward-CA- on January 19, 2004 at 6:28 AM In Reply to: Taking Subject To and then Refi'ing posted by Ed on January 18, 2004 at 9:31 PM : Interested in exploring instead of just reselling property acquired via THT, doing a Rent to Own instead. Mainly for tax purposes and to avoid dealer status. : My question involves mortgages that are principal and interest at a very high interest rate. If I refi'd to interest only, maybe 3 or 5 year, then I could drastically reduce the monthly payment and increase cash flow and/or making it easier to attract a tenant buyer. : This would be at no more than 75% loan to value. Has anyone done this? I believe I would need to take property out of trust for a new loan to come in, but would lenders allow this? Could I do it right away, or would they require seasoning? Would they allow cash to be pulled out? : Thanks for the help. : Ed =================== Ed, The only success we know of, with obtaining a loan for a property that’s in a Title Holding Trust (THT), and leaving it in the trust, is by using a portfolio loan such as an equity line of credit. We use the device often. Most major lenders make home equity loans at 75% loan to value and will allow the trustee to sign the trust deed whilst the beneficiary signs the promissory note. In fact, acting as someone’s trustee, I just signed their lender’s trust deed and they signed the promissory note. Never had to take the deal out of the THT! There’s no concern about seasoning and for sure you can pull out cash. That’s the nature of an equity line of credit. Pull cash out to your limit anytime you want. Hope this helps. Follow Ups: Re: Making a loan directly to a title holding trust (THT) Ed 6:59 AM, 01/19/04 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Interested in exploring instead of just reselling property acquired via THT, doing a Rent to Own instead. Mainly for tax purposes and to avoid dealer status. : : My question involves mortgages that are principal and interest at a very high interest rate. If I refi'd to interest only, maybe 3 or 5 year, then I could drastically reduce the monthly payment and increase cash flow and/or making it easier to attract a tenant buyer. : : This would be at no more than 75% loan to value. Has anyone done this? I believe I would need to take property out of trust for a new loan to come in, but would lenders allow this? Could I do it right away, or would they require seasoning? Would they allow cash to be pulled out? : : Thanks for the help. : : Ed : =================== : Ed, : The only success we know of, with obtaining a loan for a property that’s in a Title Holding Trust (THT), and leaving it in the trust, is by using a portfolio loan such as an equity line of credit. We use the device often. : Most major lenders make home equity loans at 75% loan to value and will allow the trustee to sign the trust deed whilst the beneficiary signs the promissory note. In fact, acting as someone’s trustee, I just signed their lender’s trust deed and they signed the promissory note. Never had to take the deal out of the THT! : There’s no concern about seasoning and for sure you can pull out cash. That’s the nature of an equity line of credit. Pull cash out to your limit anytime you want. : Hope this helps. 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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