We recently foreclosed on a sfr in Lorain OH and have a private lender who will loan in 1st position for a rehab loan. The home is held in a land trust with both partners as beneficiaries. The title company in Cleveland cannot proceed to close or insure title, stating the land trusts are not recognized in OH.
Is this correct and if so, what options do we have for a work around?
I cant answer your question....but i basically live in Lorain so Id be curious to know also.
Sounds like a legal question, and I'm not an attorney - however, I had my properties in land trusts for many years until eventually converting them into to LLCs just a few years ago. I recall them being commonly used by REI's in the 90s. I would say they WERE legal in Ohio and would be surprised to know they no longer are.
Please post your findings!
@BobMalecki I would recommend calling attorney Joseph Budde, his office is at Stewart Title in Westerville, OH.
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