All Forum Posts by: Susan H.

UPDATE:

Thanks everyone for your responses! Great suggestions and advise from all of you, which I took. This couple are no longer an issue as I refused to work with them.

Is anyone familiar with placing trusts on property? What type of trust in lay terms? Obviously this was designed to avoid the due-on-sale clause but is it legal and effective? Are there any risks to the seller?

The Garn–St. Germain Depository Institutions Act of 1982 (Pub.L. 97-320, H.R. 6267, enacted October 15, 1982) is an Act of Congress that deregulated savings and loan associations and allowed banks to provide adjustable-rate mortgage loans. The act was a contributing factor in the savings and loan crisis of the late 1980s.[1]

The bill, whose full title was "An Act to revitalize the housing industry by strengthening the financial stability of home mortgage lending institutions and ensuring the availability of home mortgage loans," was a Reagan Administration initiative.[2]

The bill is named after its sponsors, Congressman Fernand St. Germain, Democrat of Rhode Island, and Senator Jake Garn, Republican of Utah. The bill had broad support in Congress, with co-sponsors including Charles Schumer and Steny Hoyer.[3] The bill passed overwhelmingly, by a margin of 272-91 in the House.[4]

An important consumer change was to allow anyone to place real estate in their own trust without triggering the due-on-sale clause that allows lenders to foreclose on a current loan upon transfer to another. This greatly facilitates the use of trusts to pass property to heirs and minors. It may also protect the property of wealthy or risky owners against the possibility of future lawsuits or creditors, because the trust owns the property, not the individuals at risk. The bill states "...A lender may not exercise its option pursuant to a due-on-sale clause upon a transfer into an inter vivos trust in which the borrower is and remains A beneficiary and which does not relate to a transfer of rights of occupancy in the propertyâ€. (The Garn St. Germain Depository Institutions Act of 1982, (U.S.C.) 1701j-3(d)(8). .[5]

I've run into a snag with doing any kind of owner financing. Seems when I refied in August 2010 I signed a letter stating that I would occupy the home for 12 months. Has anyone heard of this?

If I can get the bank to waive the letter, I am planning on doing a straight lease because I do have a due on sale clause.

Thanks again!

It's Flagstar Bank. I just refinanced through them several months ago.

I could sell outright but don't need the cash and was hoping to use the house as an investment to generate some monthly income.

I had originally asked for 6% interest on owner financing and thought that sounded too high but after reading some of the threads on this site it actually sounds more than reasonable BUT with little down, drives the buyers monthly payment, along with taxes, etc; quite high.

It is beyond me how some can get 8+% interest and a decent down payment to boot!

Thanks for your replies!

I am callling the bank on Monday re: due-on-sale clause and I'm calling THOSE people tomorrow to say "no deal".

Property here in SC isn't doing too bad. It has slowed since rates went up I'm told. Interesting how we get used to the low 4's when it wasn't that long ago 6% was a great deal.

The $250,000 is less than my recent appraisal of $255,000 so I'm not asking an unreasonable amount.

The buyers girl friend says she's a realtor in California and she does seem knowlegeable BUT she's the one who had a fit when I asked for a credit history. I think I'm walking from this deal.

I'm also concerned about the Due On Sale Clause and should I be straight forward with the bank and tell them right out that I'm planning on owner financing? I do have someone else interested in the property.

I'm selling my primary residence with owner financing (bond for title). I still have a mortgage on it of $174,000 plus equity line of $18,000. House $250,000, 2% down, 5 3/4% interest. My personal interest rate is 4.125%. THE BUYER HAS REFUSED TO GIVE ME CREDIT OR FINANCIAL HISTORY. Should I tell them to either prequalify or get lost?

Advise please!

I'd like to sell my primary residence via Land Contract. It's worth approx. $250K, I owe $176K, @ 4.125 % $848.14 PI.
I don't pay property taxes but would if this wasn't my primary residence. How to go about it? Good down payment? Fair interest rate to charge? Would the buyer be responsible for HOA, property tax, etc; as I'd have to factor those into the monthly payment. Don't need the buyer to bank finance anytime soon. I'm in SC.

I was planning to bid at the auction. I did do a register of deed search on line and found the original mortgage, two others from the same bank, one from another bank plus a mechanic lien all against the same property. All total $177K. Property is valued at 550K+. Senior encumbrance is only $53K.

Sure would like to bid but it would be my first time. Just happens to be a house that I've always admired...I used to live in the same neighborhood.

Because I did not do a title search I'm fearful that there is more out there that hasn't been recorded plus it's unlikely that the auction price will stay low. I have not been able to find anything regarding the laws in SC as to whether buyer is responsible for anything other than the senior encumbrance, any tax liens, and the like. Deficiency judgements are allowed in SC. The owner is/was a builder and has several properties going to auction.

I live in South Carolina. Does anyone know or can tell me how to find out if I am responsible for any liens on foreclosure auction property? Looks like owner has a few second mortgages, too, although the bank is just foreclosing on the original.

Thanks! (Great site!)