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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Making a loan directly to a title holding trust (THT) Posted by Ed on January 19, 2004 at 6:59 AM In Reply to: Making a loan directly to a title holding trust (THT) posted by Ward-CA- on January 19, 2004 at 6:28 AM : : 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. Ward, thanks for the quick reply! Follow Ups: 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. : Ward, thanks for the quick reply! 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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