An Urgent Messgage To Derrick Ali!

Comments(6)

• 
  tbelknap11th July, 2003

  How many times are you going to post this?
  
  Tom

• 
  bparker12th July, 2003

  I wasn't exactly sure what forum Mr Ali normally would go to, so I just posted it twice.
  
  I been a member here for over 100 days, but I go the message, so this is the first and last time I'll ever post anthing twice.
  
  So do you actually have an answer to my question?
  
  Anyone's insight would be helpful?
  
  thanks
  bparker
  
  Thanks

• 
  tbelknap13th July, 2003

  The trustee will deed the property to the new owner when it is time for the closing. Once the house is transfered the trust will cease to exist so there is nothing to do with the trust after that.
  
  Tom

• 
  bparker13th July, 2003

  Thanks for the response Tom,
  
  What I'm getting at is this. The FHA recently passed new restictions regarding the government insured 203 loan( up to 97% financing) . they are:
  
  1) a buyer will be turned down for a FHA loan, if the (seller) investor was not the actual owner of that property for atleast 90 days, and up to 180 days and even 1 year with restrictions.
  
  2) Only the owner on deed can sell a property to a buyer, a law passed to get rid of assigning contracts, and for an investor to make money without ever owning the property.
  
  So Mr ALi states that by him being the trustee, and the beneficiary being the folks presently in the property, he can get around that new predator lending law. By my qustion was:
  
  Since the fha recognizes the benefciary as the actual owner, than who's name should be on the sales contract, the trustee or the beneficiary?
  
  It appears to me that if the fha sees the trustee's name on the sales contract, they could argue that the trustee's name has been listed on public record for less tha those 90 or 180 days, and therfore deny the loan to the buyer.
  
  Another problem , is that in order to pass rule 1 above, the beneficiary has to be recognized as the true owner of the property. So when we bring it to the banks/ and FHA ttention that that is the case , than that 2nd rule comes up. That only the actual owner on title can sell the property.
  
  SO if we just got done showing the bank / and FHA that the beneficiary is the actual owner to pass rule 1, than how can we pass rule 2 above, if on the sales contract the actual owner isn't the one selling the property, but the trustee instead.
  
  It appears that in order to get around rule 2, we would than have to contradict ourseles, and now tell the bank /and FHA, that the beneficiary was the actual owner in order to pass rule 1, but now the trustee will be the actual owner of the property in order to pass rule 2.
  
  any input would be appreciated.
  
  thanks
  Bruce Parker

• 
  bparker13th July, 2003

  Th only other option, if possibe,
  
  1) make sure and leave the original owner as beneficiary on public record, meaning beneficial interest stays with that original owner and is not assigned away to a 2nd party on public record.
  
  2) get a power of attorney from original owner (beneficiary)
  
  3) the trustee sells property away to new buyer, using the orginal owner)beneficiary) on the sales contract. The sales contract that fha/ and the fha bank will be lookng at, to make sur no rules ar being broken.
  
  and trustee would show land tust agreement and poa agreement to closing agent /bank/ and fha, showing them trustee has power to do this. and that both rules 1 and 2 bove are being passed.
  
  IS THIS POSSIBLE!

• 
  tbelknap14th July, 2003

  It is hard to comment on what a bank will do. My advice is to get a mortgage broker on your team so they can find a mortgage for you buyers in case the original does not go through because of seasoning.
  
  Tom