Land Trust

[Christopher Adkins]

Hi Guys,

I could really use some help on this one as I do not have a lot of experience with Land Trust.

Here is the scenario from the owner:

Or I can owner finance to a LLC or other entity, property stays in the land trust you are assigned beneficial interest in the land trust I stay on as lien holder and you sign an assignment of beneficial interest in case of default you give up your right to foreclosure.

$84,900 purchase - $10k down (we can do $2500 non refundable deposit to hold until May or whenever your wife makes it here to take possession)
8% interest P&I $549.59 / taxes approx $123 / insurance approx $84 / total monthly $758

The P&I is calculated on a 30 year fixed. I would prefer a 15-10 year fixed as the interest rate is quite high and I want to pay down the principal balance sooner. Re-finance after 1 year at a better rate.

I would really appreciate some advice on this one.

Thanks

[Laura Richards]

@Christopher Adkins The simple and most important answer to this whole thread (in my humble opinion) is that it's not  going to work the way parties believe it will. 

First, a land trust, no matter how you word it, will not do anything to help a lender of any kind avoid foreclosure in Florida. I wrote an entire blog about it and cited many cases to support that opinion. There are certainly good reason for lenders to require that properties be in a land trust with this structure, but avoidance of foreclosure is not one of them. 

With that said, this deal screams for simplicity. Go ahead and use seller finance, but just do a straight Mortgage and Note. If a default occurs the lender can file foreclosure, offer cash for keys, get a Deed in Lieu, etc.