I own a townhouse, worth 93k. A land trust owns the land , worth 20k, and leases back to me. I have owned for over 10 years. I want to refinance and buy the land trust out. They are willing to work with me. I have 17k equity in townhouse. I owe 63k on the mortgage. What is best route for me to accomplish this?
Also, I am closing on a new house and probably changing my occupancy so this townhouse would become a rental income. Townhouse would rent for easily over $800+ a month. I had good FHA appraisal etc. already. Any more tips? The numbers work well I think. How about HARP ? thanks so much!
This really isnt so much of a legal question as a financial one. If the trustee of the land trust has the power to sell or the beneficiary (the true owner) instructs the sale, there should be no legal impediment. The issue becomes whether a lender would go along with your financial position.
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I would sit down with a good attorney like Clifton Black in Colorado Springs and talk about the best way to accomplish your wants and needs in this situation. This is too fact-intensive and will be too difficult to answer on a forum like this. Best wishes
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Land Use / Zoning Attorney
I agree with the comment above, the legal issues are pretty clear - yes you can do this. From there it is financial issue.