Land Trusts

[Muhamand Wilkes]

Has anyone here used a Land Trust? I would like to use one with a fannie mae mortgaged property in GA if it really alllows you to move it under an LLC w/o triggering due on sale

[Bill Walston]

Originally posted by Muhamand Wilkes:

Has anyone here used a Land Trust? I would like to use one with a fannie mae mortgaged property in GA if it really alllows you to move it under an LLC w/o triggering due on sale

I've used Land Trusts for years, with great success. They are a great tool for any investor.

It's possible to transfer property to a Land Trust without violating the due on sale clause. That being said, once you transfer the beneficial interest to another you will be in violation of the clause. There is a great deal of debate as to whether or not a lending institution will actually enforce the clause, but you WILL be in violation of it.

If your only reason for using a Land Trust is to facilitate the transfer of your property to an LLC without violating the due on sale clause of your mortgage, you are out of luck, in my opinion.