Selling your home:
Frequently Asked Questions

Q: Is this legal? How come I haven't heard about it?

A: It is completely legal. All steps are governed by either The Annotated United States Code, Internal Revenue Service Code, or best business practices. This method was pioneered by Cal-Equity in 1984 and has been in use in it's current form since 1994. It has been very successful in selected markets. One Prudential brokerage has performed over 300 of these transactions. The book written by Bill Gatten is available through Amazon.com or your bookstore.

Q: How can I do this if my loan is not assumable?

A: Your loan doesn't have to be assumable. You are not transferring title to another individual so there is no basis for assumption. Title is being transferred to your land trust. You are then transferring the benefits of ownership without jeopardizing the title.

Q: What about my equity?

A: There are several ways to handle this:
1. We can buy your equity at the start of the trust
2. The mortgage can be refinanced to withdraw the equity for you
3. A second mortgage can be placed on the property to withdraw the equity for you
4. Equity can be paid directly to you monthly
5. Equity can be carried like a certificate of deposit
6. Equity can be paid out in a lump sum at the termination of the trust

Q: Won't this affect me getting a new loan?

A: With the documentation package we provide it is not a problem. 100% of the time lenders view the property as either being sold on owner financing, or as an income property with no financial obligations, and give 100% debt to income credit on your new loan application.

Q: What if you don't pay?

A: Has never happened, but if it did you would kick us out with our money. Remember the fund the trustee holds in advance? No foreclosure is needed. Additionally, we'd be taken subject to IRS recapture of all tax write off we had taken along the way. Insurance covers damage to the property. You simply cannot be any worse off then you are right now, and likely would be in much better shape since the mortgage would be much lower.

• Sell Your Home
  Please take a moment to tell us all about your house and situation. We will then work together to create a win-win sale that will work for everyone.
• Anatomy of a Transaction
  Read this step-by-step overview of the process to better understand how you can benefit from this great program.

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The following articles cover the more widely used forms of seller financing which you may be more familiar. While they are regularly used by investors and home sellers, it is important to fully understand their more dangerous aspects.

Lease Option (L/O)
A very familiar and widely used form of seller financing. Find out what could happen when you attempt to evict a defaulting tenant.

Contract for Deed
This payment plan doesn't allow the buyer to legally own the property until all debt has been paid off. Sounds good until the other parties liens, lawsuits, judgements, etc. affect YOUR property.

The "Wrap" - All Inclusive Mortgage (aka AITD)
You create another mortgage with a monthly payment which covers the monthly payment on the existing mortgage along with a litte extra for you. Positive cash flow is nice but are the risks really worth it?

The Equity Share
Two or more parties with a shared-ownership interest in the property. You could be foreced into a judicial foreclosure is the resident buyer defaults.

The "Subject-To"
Another widely used seller financing method that allows a buyer to "assume" the loan "subject to" the existing financing. And if the lender finds out? The title to the property is also placed in jeopardy regardless.