real estate attorneys

[branboles]

Does or has anyone had trouble finding a good attorney that doesn't shy away from doing sub2 deals? I am working on closing my first deal and every attorney I have talked to thinks that I am talking a huge risk and/or potentially breaking the law by taking a property sub2. They all said that they would do the closing for me, but that they would have to file a letter stating that they have advised me against doing this type of transaction but that I have elected to go through with it anyway. Is this typical? I am looking for an attorney in the Harlingen/Brownsville/McAllen area of south Texas, so my choices are somewhat limited. If anyone has any suggestions or advice, I would appreciate it. Thanks!

Brandon

[tedjr]

The attorneys are just covering their butts. Buying sub2 certainly is not illegal. I am sure too that lenders are not stupid. They know these type sales go on everyday.  I am sure they read posts like this and several other forums. If they give you a letter so what BIG DEAL. As long as they do not send a copy to the lender.  Maybe we should all get bumber stickers that say SUB2WORKS.  Good luck and do some good deals.

PS

If you get sued for taking my advice do not sue me as I am not an attorney and did not charge for the advice as it was free and posted on a free bulleten board and yada yada. See what crap attorneys will make you put into something.

Thank you,

Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas  78737

512-301-9171 home
512-587-6177 mobile

[agkatz]

I don't think it's the Sub.2 part they're objecting to... it's the "Don't tell the bank you're doing it," part.  

Open your eyes  You can't find a lawyer who will endorse this type of transaction... BECAUSE IT'S NOT KOSHER!  

Lawyers are legal experts.  Guys who sell courses on the internet are not.  

Just because somebody hasn't been prosecuted for defrauding a bank yet, doesn't mean that they WON'T be prosecuted for it.

[tedjr]

I guess by your post that you do not want a bumper sticker. Fraud is just a bit harsh here.  The only possible wrong doing would be a civil case at best and in no way is it fraud at any stretch of the word. Lying on an application would be fraud and I would never do that.  There are many lawyers who do these deals and if it were fraud I am sure that they would not do them amd furnish the buyer with a letter. Wally Tingley here in Austin is well known for his Wally Wrap over the last 20 + years doing wrap around mortgages. Doing a wrap or Sub2 is risky as it could trigger a due on sale  default but is only a default, if even that, which can be cured. It is not fraud.

Thank you,

Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas  78737

512-301-9171 home
512-587-6177 mobile

[agkatz]

fraud definition – fraud is defined as a deception deliberately practiced
to secure unfair or unlawful gain.

Of course you're "deliberately deceiving" the bank... that's why you're using the land trust.

[WilliamGA]

I disagree, Adam.

I use trusts for asset protection, privacy and just plain because I like them. I use them whether I take sub2 or I pay cash, either way, it's the only way I take title.

I don't tell the bank any "estate planning BS" either. I have the seller give them a change of address and list me as a contact person. I have the seller deed to a trust that I form with the beneficial interest and a trustee.

No assignment of beneficial interests here.

Violating a DOS clause is a long way from Bank fraud.