All Forum Posts by: Jeff Luman

If the property were placed into an Illinois land trust, with a neutral party as the trustee, you could set up an occupancy agreement where
#1The existing owner keeps his financing in place.
#2 you have almost all of the rights as a homeowner (tax deductions, rights to dispose of property etc.)
#3 the only way you can lose the property is if you do not make payments (at which point you either pay off the property or it goes back to the original owner.)
#4 properties in a title holding land trust are not subject to the Due on Sale clause found in all mortgages

To help the seller have more confidence in you, you can place say 3 months payments with the attorney/company that is the trustee. Then if you get behind, the seller is given notice, and he doesn't have to scramble for money to keep his credit from getting tagged. If you do not pay, the process to remove you from the property is not foreclosure. It is eviction.

There are quite a few companies around tha to do this and will manage the trust for a small fee each month, but a good real estate attorney can do it just as well.
(Trusts are how the investor group that I work for structures all of its private mortgage financing)

I do not see many pro athletes/actors hurting because of their behavior. In fact, for an actor/actress any press is good press.

The execs on the other hand remind me of the old line "then let them eat cake"

I hold this right up there with golden parachutes

Hello,

I am Jeff Luman. Currently I work full-time as an offshore surveyor, and I am a regional affiliate for a large private investor group that finances residential and commercial property.
I am originally from Nacogdoches Texas, but I work mainly in Louisiana now. I was in the navy, I was an EMT , and I was a police officer. My wife and I decided that I would live longer…and she would live longer with me, if I pursued less stressful (to her and myself) occupations. I got into the survey work, positioning assets for oil companies in a marine environment, which led me to some networking and real estate deals, which led to my working for the investor group…..none of which are any less stressful than the previous jobs.
I look forward to networking here and learning from more experienced people

In most cases subject to is just another term for owner financing. They have a mortgage, they will keep the existing financing in place, and you make the payments. This violates the due on sale clause that all mortgages have. The only way I know around the due on sale clause is if the property is placed in an inter vivos trust (title holding, also called an illinois land trust)

" The Illinois land trust is easy to establish and inexpensive to maintain. It is a method of real estate ownership in which a trustee holds legal title to real estate, while the trust’s beneficiary has full power to dispose of the property and complete control over its management"

This allows someone to owner finance a property without fear of the bank calling the full amount due.

I have never seen any data on how many due on sales clauses are invoked, but I just do not like that chance over my head.

Subject too can be great for you if you are buying. Especially if you can get the property with just taking up the payments.

To the original poster, yes lets not blame the people who bought what they could not afford, lets blame the agents that presented the property. That is the mindset that makes this country great. No personal responsibility.

To the posters just starting in real estate,
real estate agents are having trouble getting property sold, not because of a lack of interest, but because of the lack of financing. In some places, you have to show an agent a 700+ credit score and a bank statement with a down payment for them to even talk to you. My advice to struggling agents would be to actively seek out financing options for their clients. Line up some private investors, or some of the few people still in the subprime game, or investor groups like ours who base funding off of property value, and down payment instead of credit score.

If you have options that you can present to your clients, you will sell more property, and develop good relationships with the lenders/investors/finance groups that you are hooking people up with

As already posted, speak with the bank who owns your mortgage. Many LOs are willing to give you new terms to avoid having to foreclose on yet another property.