What are the Benefits to the Buyer?

The benefits of ownership without mortgage loan qualifying:

1.   Ownership without new loan or credit application.

2.   A legal and safe way to take over payments on an existing loan.

3.   Asset protection and privacy of ownership due to the avoidance of holding title in “your name”.

4.   Even though title is not passed to the Buyer, they are entitled to all income tax deductions for mortgage interest and property tax payments.

5.   A Buyer who would otherwise be just a “tenant” can receive equity build-up through reduction of the mortgage principal as payments are made.

6.   The property is protected (shielded) from creditor judgment, tax lien, lawsuit, bankruptcy, or claims in marital dispute by an (ex)spouse of either party (resident or non-resident beneficiary).

7.   Subterfuge, secrecy, or “quiet” documentation is not needed.  All parties, including the lender, are notified of the transaction.

8.    An abundance of properties are available in our current real estate market: houses, townhomes, condos, and commercial properties.

9.    Each property can be different, but some properties may not require much cash up front.  It depends if there is a Realtor involved, do we need to make up back payments if the Seller is late, etc.  The minimum required can be expected to range from 3 – 5% of the purchase value, and adjusted based on the situation with the property.

What are the Benefits to the Seller?

Less costly, much faster and far simpler disposition of the property:

1.   A far better alternative to short sale, foreclosure, contract for deed, selling subject-to, lease options, etc.

2.   No damage to Seller’s credit, and actually will improve Seller’s credit if already damaged.

3.   A faster sale and shorter escrow.

4.   Freedom from loan payments and house expenses that may no longer be affordable.

5.   Seller does not have to rent or lease out the property to obtain payment relief. Expense of negative cash flow, maintenance costs, and vacancies is eliminated.

6.   Costs of disposition are greatly reduced, in that buyers, free of a “down payment burden for a loan”, can pay all closing costs (including any real estate commissions) so that Seller does not have to come out of pocket for any closing costs.

7.   The property is shielded against any tax liens, judgments, bankruptcies, or marital disputes from any party.

8.    In other “owner financed” strategies, if the buyer defaults the owner would need to file foreclosure to get the house back.  This can take 9 months to a year or more.  With the Trust Selling System a defaulting buyer can be evicted as if they were renters, removing them from the property within 1 to 2 months.

9.    Income tax on any gains are circumvented, deferring any gains for years to come.