Last night I spoke to a group of real estate investors about the many benefits of using a Land Trust. After my speech, a lady came up to me and said she sure wished she had used a Land Trust to hold title to her personal residence.
Of course, I asked, “Why?”
She went on to explain that she had some financial difficulties left over from the crash of 2008, Now, a creditor was pressuring her to pay her debt in full. The creditor looked her up online and found out the value of her house and approximately how much debt was secured against the house. By doing this, the creditor approximated how much equity she had.
Having Your Net Worth in the Public Record Has Consequences
The creditor called her up, cited the information he had determined, and said, “Don’t tell me you cannot pay me off because I know how much equity you have in your home!” The lady went on to tell me that if she had owned her home in a Land Trust, the creditor would not have been able to determine her home’s equity. As a result, she would have had a better negotiating ability. In the end, her options were taken from her.
Stand By Your Obligations
When we assume or acquire a debt, we need to fulfill our obligations. I pay my debts and I encourage everyone to do the same.
At the same time, Land Trusts can provide you with options you don’t have when you own property in your name or the name of your LLC. In this case, instead of choosing if or when to use her equity, the creditor forced the issue.
Of course, she didn’t tell me anything I didn’t already know, but it is always nice to hear the Land Trust advantages from someone else! Too bad some people are not proactive with their real estate protection and wait too long to act. Don’t let anyone push you into a corner! Use Land Trusts, now!