Home selling how-to:
Anatomy of a Transaction

For some this is a little technical. It is worth understanding so you can see what is in it for you.

1. We mutually agree upon a value for the property, and how the existing equity value will be paid.

2. The property is placed into your land trust to protect title. The land trust is very much like a family trust people use for estate planning. This gets the property out of your name so you can go on to your next house. You shouldn't put us on title to your property though until we are ready to refinance the property for your protection. This accomplishes that as well. You will still have all the control of the property you would like since the beneficiaries rule the trustee in a land trust. This action is allowed under 12 USCA Section 1701-j-3, commonly referred to as the Garn-St. German Act of 1982.

3. You name us an additional beneficiary in the land trust. You remain a beneficiary too for your security, and to avoid violating the lender's "due on sale" or assumption clause. This also provides an additional layer of protection since now no creditor or lien holder including the IRS can attach a lien or force a sale of the property even if they were to sue you or us and win. Actually, it would be wise to set up title holding on any property you own in the future this way for asset protection purposes.

4. We formalize our payment arrangement through a commercial type or "net" lease. This type of lease agreement obligates us for not only the mortgage payment, but also for the repairs, maintenance, upkeep, property taxes, insurance, assessments, etc. in order to satisfy the requirements of IRS Revenue Code 163 h) 4) D). The payment is made each month by the trustee from a fund we establish in advance and continue to pay into monthly so the funds are always in place 60-120 days early.

5. At the termination of the trust the property is either refinanced or sold outright. From the proceeds of the sale the remaining loan balance is retired, the costs of the sale are paid, and any remaining equity you may have in the property along with any closing costs you paid initially are refunded before we receive any monies.

Don't worry if you don't understand right now. There are always questions. Please proceed to the frequently asked questions (FAQ) page and then direct any further inquiries to us directly by email or phone for further discussion.

• Frequently Asked Questions (FAQ) - Sellers
  You more then likely have questions, we have answers.
• Sell Your House
  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.

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.