Peter,

I believe you are all wet about Land Trusts and how they are used. No relationship between beneficiary and the NOTE. Mortgage is not the NOTE. If you are in the business, you should know all this.

Regardless of who is on the NOTE, if the NOTE is not paid, the lender will foreclose on the PROPERTY using the terms of the MORTGAGE, regarless of the beneficiaries of the TRUST.

Dutch


Peter Rochford <prochford@comcast.net> wrote:
Land Trust and other types of trust are fine. There should be guidelines
that you can read that states what can be allowed and not allowed for using
trusts by whomever investor that use. For example, the trust beneficiary
has to be someone that is attached to the mortgage. You can't have trust
set up where as the kids are the beneficiary and the mortgage is held in the
parents' name. Once the parents die the mortgage company can not go after
the kids for payment. To see a pattern about what mortgage companies look
for. They want make sure they have first rights to hunt their payment and
do not want any legal instrument to get in their way. I to am a mortgage
person. I hope that helps.

Peter Rochford
Prochford@comcast.net

-----Original Message-----
From: Bobbie [mailto:batwanda@yahoo.com]
Sent: Saturday, March 05, 2005 1:01 AM
To: IncomeProperties@yahoogroups.com
Subject: [IncomeProperties] Re: fixed rate loans for investors



I can not say I know the answer to this, but I think property owned
in trust may be a bit different. AS far as a corp or an LLC, I
agree, what is the difference, as long as there is someone who is
signing personally for the note...I will be intersted to hear
others. I am a mortgage person, but I am still looking to crack the
nut of closing in Land trusts and all that intersting, private
stuff. Anyone ?
Bobbie FLoerchinger
Super Mortgage
727-547-8776 office
727-235-3181 cell




--- In IncomeProperties@yahoogroups.com, <franxyz@c...> wrote:
> I've just been told by a mortgage broker that I thought I trusted
that an
> LLC can only get an ARM, that they can't purchase property with a
fixed rate
> mortgage. He said this is a Fannie Mae and Freddie Mac charter
violation.
> Only individuals can sign off on fixed rate loans. Corporations,
LLCs, etc.
> can only sign off on adjustable rate loans.
>
>
>
> I find this very hard to believe.
>
> First because legally a corporation IS an individual, just not
a "natural"
> individual.
>
> Second because not all loans have to conform to Fannie Mae and
Freddie Mac
> guidelines.
>
> Third because I know a lot of people that purchase property within
trusts,
> and if a trust can sign off on a fixed rate mortgage, I can't
imagine why a
> corporation couldn't.
>
>
>
> Is this true? Or is it just that this broker is so used to
working within
> the conforming loan requirements that he can't even think about
loans that
> don't meet Fannie Mae and Freddie Mac guidelines?
>
>
>
>
>
> [Non-text portions of this message have been removed]







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