Anyone used the pact trust

[Mark Berry]

I just came from Bill Gatten's 2.5 day workshop and was curious if anyone else out there has had success with the system.

[Bill Exeter]

I think it is important to clarify a few things here as well. The pure land trust or Title Holding Trust is really designed to keep ownership of real estate on a confidential and private basis.

However, there are those that have twisted it to provide other potential benefits such as avoiding the due on sale clause and the like. These trusts have potential issues because full disclosure has not been made, generally to the lender, and title companies are not comfortable with that, and have probably been exposed to potential losses as a result.

The initial acquisition of real estate in a land trust where the trustee of the land trust is also signed the loan documents provides full disclosure to all parties involved. The lender has done their due diligence on the trust and the parties involved and the title insurance company generally requests copies of all the documents, too.

It is not the true or pure land trust that creates the problem, but the modified version or uses that creates concern.