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Jack W. Dopp There is a simple revocable, living, trust that meets all the potential problems pointed out in any rent-to-own situation. It evens allows the tenant [trust owner] to write off their "rental" payments.
Jack W. Dopp These experts are pretty much correct in their attitudes. I find most "old-timers" are thought resistant, and don't seem to realize that the most exciting change is in learning to use the loan modifications that are appropriate when using regulation Z as a tool with the lenders. Forget about beating down the lender's loan balance--let them keep it in place [thereby showing no asset loss] and get the rate set at 4-4 1/2 % fixed for 30 years. The payments will be less than rent. If they put the property into a revocable Land Trust, they can rent-sell it without fear of triggering due-on-sale clauses which will be enforced again when interest rates start going up. I'm 82 [almost] and when I get old I'll probably be limited in thought-as some of "them" are.
Jack W. Dopp An unorthodox answer from an 82 year old who isn't smart enough to be a licensed agent [but who has bought a couple hundred properties-and is now buying REO's for 25% of current market value] is to consider the loan modification. An expert can use the problems with Regulation Z to establish the loan as illegal-80% of the cases I'm told [see the Loan Safe website]. They are FHA approved. The most interesting way to modify is to reduce the loan to a 4 1/2% fixed rate-30 years and leave the original balance in place. The payments will probably be reduced to less than rent in your area. If you desire to sell, I can show you how to use a simple Land Trust to take title to the property-sell it , and retain control over your loan. Incidently, right now, you can put the property in that kind of Trust and sell it without triggering the due-on-sale clause. The Garn bill of '83 makes it legal. I'm in Beaumont, Ca.