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.
From: Bobbie [mailto:email@example.com
Sent: Saturday, March 05, 2005 1:01 AM
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 ?
--- In IncomeProperties@yahoogroups.com
, <franxyz@c...> wrote:
> I've just been told by a mortgage broker that I thought I trusted
> LLC can only get an ARM, that they can't purchase property with a
> mortgage. He said this is a Fannie Mae and Freddie Mac charter
> Only individuals can sign off on fixed rate loans. Corporations,
> 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
> Second because not all loans have to conform to Fannie Mae and
> Third because I know a lot of people that purchase property within
> 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
> the conforming loan requirements that he can't even think about
> don't meet Fannie Mae and Freddie Mac guidelines?
> [Non-text portions of this message have been removed]
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