Need a lil advice

3 Replies

Hi everyone, I am a newbie out of South Carolina I am looking to seriously start investing in real estate I would like to do some flipping deals as well as buy and hold properties.

I am currently working on my first buy-and-hold property which is actually a property that my stepdad owns. Here's some background: My stepdad was no longer able to pay the mortgage on the property, the property was put into the pre-foreclosure process , I was able to get the property out of pre-foreclosure. I am currently paying the mortgage on the property as well as fixing it up. My plans are to move into the property and at some time later time rent out the property.

The mortgage is still in my stepdads name and the insurance is being provided by the mortgage company "nationstar"

I am interested and having the deed put into my name as well as the insurance so that I can pay a lower monthly cost in insurance.

However I do not want to do on sales clause. I here that once the insurance company notifies the mortgage company of the name change it can accelerate the loan.

Please help

You should have your stepdad put the deed into a land trust and then assign you beneficial interest into the land trust. We usually name the land trust, "last Name family trust" or "123 Maple St Land Trust" When mortgage companies see this they typically see it as estate planning and as long as the payment s are being made I have never heard them call a loan due. you can ask your local investor friendly title company if they have an attorney on staff who can create the trust for you. Hope this help. 

Alex Quezada

Originally posted by @Alex Quezada :

You should have your stepdad put the deed into a land trust and then assign you beneficial interest into the land trust. We usually name the land trust, "last Name family trust" or "123 Maple St Land Trust" When mortgage companies see this they typically see it as estate planning and as long as the payment s are being made I have never heard them call a loan due. you can ask your local investor friendly title company if they have an attorney on staff who can create the trust for you. Hope this help. 

Alex Quezada

Agreed Good advice same time Contact a few real estate Lawyers in the Area. Don't be afraid to ask questions.

Greenville a great Market, My parents live just down the road in Easley.

Alex

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