Trust Takeovers (Sellers)

A fast, low‑equity solution that moves title into a trust, routes payments through third‑party escrow, and protects everyone’s interests. Not legal advice—case‑by‑case with counsel.

Where this fits (and why sellers use it)
- Best for: Low or no equity, rate‑locked mortgages, light arrears (can be cured at closing), need to move or stop a drain.
- You want: A quick, clean exit without coming out‑of‑pocket or discounting aggressively.
- We want: A compliant structure that keeps the underlying loan current and documented.

How we buy (your three options, side‑by‑side)
- Seller Financing: You carry a new note to us (or our buyer). Cleanest when you have equity.
- Trust Takeover (this page): Title moves into a revocable trust; loan stays in place; we acquire the trust’s beneficial interest and take over payments via third‑party escrow/servicer.
- Mortgage Takeover: Formal assumption (FHA/VA/portfolio): We apply, lender approves, you’re released.
- “Subject‑to”: We buy and leave the loan in your name; payments are made via escrow/servicer. Higher due‑on‑sale risk than trust, but often workable.

What a Trust Takeover is (in plain English)
The property is deeded into a revocable land trust (or living trust).
A neutral trustee holds title for the trust; the trust owns the property.
We purchase/receive the trust’s beneficial interest (control), and agree in writing to make all loan, tax, and insurance payments via a licensed servicer/escrow.
You exit ownership; your loan stays in place and is paid on time.

Important due‑on‑sale reality
Many mortgages include a due‑on‑sale (DOS) clause allowing the lender to call the loan if title transfers.
Federal law (Garn‑St. Germain) exempts certain transfers (e.g., into your own living trust while you remain a beneficiary and occupy the home). A full “takeover” rarely meets that exemption.
Translation: A trust structure can reduce attention and smooth operations, but it does not guarantee DOS won’t be enforced. We never promise to “beat” DOS. We keep the loan current, maintain proper insurance, and have fallback plans (below). We also pursue lender assumption when practical.

How a Trust Takeover works (step‑by‑step)
Fit call (15 minutes)
- Confirm loan type, balance, rate, payment, arrears, HOA/taxes, property condition, and your timeline. - - Authorization to verify loan status.
Preliminary diligence (48–72 hours)
- O&E/title, tax & HOA status, insurance check. In Florida, a municipal lien search.
- Deal memo (written)
- Purchase terms, cure of arrears (if any), closing timeline, servicing/escrow setup, due‑on‑sale disclosure, and fallback plan.
Trust + title transfer
- Deed to revocable land trust recorded; neutral trustee appointed; trust agreement finalized. (You no longer own the title.)
- Beneficial interest transfer
- You assign the trust’s beneficial interest to our entity. We execute a Performance Deed of Trust/Security

Instrument in your favor to secure our promise to pay.
Payments + escrow
Licensed servicer/escrow auto‑pays the underlying mortgage, taxes, and insurance each month; you have read‑only visibility.
Insurance + notices
Hazard policy updated: owner = trust; mortgagee = lender; additional insured = our entity. HOA and tax notices redirected to the servicer.
Exit strategy
We stabilize, then refinance, resell, or place the property long‑term—without missed payments.

Documents (typical set)

Warranty/Grant Deed → Trust (recorded)
Trust Agreement (revocable land trust/living trust)
Assignment of Beneficial Interest (to our entity)
Performance Deed of Trust / Deed to Secure Performance (from us to you)
Limited Power of Attorney (administrative items: insurance, HOA, taxes)
Servicing/Escrow Agreement (third‑party drafts/pays the mortgage)
Seller Disclosures (DOS clause, wrap/subject‑to risk, credit impact if default)
Insurance endorsements (trust owner, lender mortgagee, add’l insured)

Payment flow (simple)
Our funds → Servicer/Escrow → Lender (PITI)
Servicer also pays HOA/taxes if applicable and tracks balances. You can view statements.

Benefits to you (seller)

No big price discount just to move the property
Loan paid on time (credit stays clean); arrears cured at closing when applicable
No realtor showings or repairs; close in 10–15 business days on clean files
Written security: performance deed + third‑party escrow + limited POA boundaries

Risks (real talk) + mitigations
Due‑on‑sale call
- Risk: Lender can demand full payoff.
- Mitigation: Keep current; correct insurance; professional notices; we hold reserves; we can refinance, resell, or pay off if called. If the lender offers a formal assumption, we’ll pursue it.
Payment failure
- Risk: Your credit could be impacted if payments stop.
- Mitigation: Third‑party servicing, reserves, performance deed in your favor, default remedies, periodic statements to you.
Insurance/HOA lapses
- Mitigation: Servicer escrow or strict tracking; proof of coverage shared.
Title/transfer snags
- Mitigation: Close with title/escrow; cure liens; trustee is neutral; all deeds recorded.
Occupancy/tenant issues
- Mitigation: We manage turnover and compliance; no borrower contact by you.

When we won’t do a Trust Takeover
1. Heavy unresolved code/tax/HOA issues with no practical cure path
2. Lender or HOA explicitly forbids transfer and won’t cooperate
3. Severe negative equity plus major deferred maintenance (no win‑win path)
4. You need a full, immediate loan payoff (use a standard sale instead)

Trust Takeover vs Subject‑To vs Seller Financing (quick compare)
Trust Takeover: Title → trust; existing loan stays; we control the trust; third‑party servicer pays lender; DOS risk managed but not eliminated.
Subject‑To: Title → buyer/entity; loan stays; higher visibility of transfer; often similar DOS risk; still workable with escrow/servicing.
Seller Financing: New note from you to us; no DOS risk on a bank loan because there is none (unless wrapped); great when you have equity.

FAQs
Will my lender be told?
We comply with law and policy. We do not misrepresent occupancy or ownership. Where an assumption is feasible, we’ll seek it. Otherwise, we keep the loan current with proper insurance and reserves.
Can this stop a foreclosure?
If timelines allow and arrears are modest, we can often cure at closing and prevent a sale. If a sale is imminent, we’ll be honest if timing is too tight.
How fast can this close?
Often, 10–15 business days once the docs are clean and arrears (if any) are defined.

Compliance + counsel
Not legal/tax advice. Every trust/transfer is attorney‑drafted. We close through title/escrow and use licensed servicers. Due‑on‑sale enforcement is always a lender decision; we cannot guarantee avoidance.
CTA
Curious if your house qualifies for a Trust Takeover?

Fill out the form below and put your property details (Full Address, Lien Terms and Conditions, etc) in the "comments" section to get a written offer (Trust Takeover, Seller Financing, or Mortgage Assumption) within 24–48 hours—no obligation.