AITD (ALL INCLUSIVE TRUST DEED)
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AITD is a well known acronym. It means All Inclusive Trust Deed. When you work 12 hours a day with this kind of product you start using acronyms to make your work better. If you want to expand your knowledge visit our page about All Inclusive Trust Deed.
An AITD is also known as a wrap-around loan. This means that a preexisting loan is absorbed into a fresh loan that is made by a property’s seller. AITD is a “Subject To” transaction in which the seller also carries back from the buyer a promissory note as part of the purchase price secured by a junior trust deed on the property.
Generally, the buyer makes payments to the seller (or collection account) in an amount sufficient to pay any senior loan and the seller. The seller (or the collection account) is then required to make payments on any senior loan with the balance going to the seller on the junior loan.
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[...] In the event the first trust deed and note contains a “Due On Sale Clause,” the parties will want to seek legal and tax counsel as to the ramifications of doing an AITD.” [...]
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