Using Land Trust and Land Contracts for my clients

[Giovanni Cortorreal]

As a Realtor, here is what I’m planning to do to assist my clients who do not have credit, yet they have a good chunk of the money needed to purchase a home.

1. The seller creates a Trust and deeds the property to the Trust.

2. The seller signs a Trust agreement with the buyer and lets the lender know that such agreement has been made - the buyer is now the trustee; allowing the buyer, once equitable interest is obtained, via step 3, to purchase home owners insurance in his own name, without alerting the lender that a transfer of ownership has occurred and triggering the "Do on Sale" clause.

3. Use a Land Contract with a 5 year balloon payment to establish the terms of the sale. This agreement will be forward to the loan servicing company.

4. I get paid by having a buyer agency agreement with the buyer.

Does anyone of you guys/ gals see any problem with this?

If you do, please let me know. I’m trying to get a good understanding of the use of these instruments so don’t be afraid to post your comments, positive or negative, you won’t hurt my feelings.

Thanks for all your help; I look forward for your responses.