Assumable Subject To Land Trusts Companies

[Bryan N.]

I came across a company that sells homes to investors and owner occupants utilizing Assumable Subject to Land Trusts. What are the Pro's/Con's and more importantly the pitfalls or things to be very aware of in order to self protect?

[Jon Holdman]

Despite the name, the loans are almost certainly NOT assumable.  This is just subject to.  The land trust is a way to TRY to hide the transfer from the lender.  But its still a subject to and the due on sale clause may well be enforced.