Deeding To A Landtrust
Hi everyone,
Let me give you some #'s first.
City Assessment $257k
payments 1400 (not including taxes 6K a year)
Owed 200k ( 2 payments behind)
I am thinking that the house will appraise for 275 or 285. I have to run comps. I am going to take this one Sub2.
My question is this. When I have the homeowner do a WD to trustee and have her sign over benifical intrest of the trust to me is this going to make it hard for me to sell this as the owner? If so what would be a better way to do this?
Could I have her dead it to me and sell it as owner? This is going to be a turn and burn for me. I really just want to let it go for a good price and make some money off it. Any suggestions would be great.
P.S Is this to good of a deal to try and shortsale?
Ron
This should not pose a problem for you. The Warranty deed gets recorded, the Trustee becomes the owner, directed to act by the beneficiaries of the trust (i.e. you). As long as you can deliver clear title at closing, (By instructing the Trustee to do so) there's no problem.
Jeff
You would have the owner notify the mortgage holder of their intention to put the property into trust for financial reasons. The seller would name you as the trustee. Then you would have the seller sign over beneficial interest in the trust to you.
THis would leave the trust (corpus) in your name as trustee and the beneficial interest in your name and you would be able to sell or convey title etc. as you wish.
_________________
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People who avoid failure also avoid success.
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[ Edited by Stockpro99 on Date 01/26/2004 ]
Why would you need to notify the mortgage holder of the transfer to deed to a Trust. Does that not counted the entire point of a Trust? Just wanting your reasoning. We have never done this and don't plan on it but I am curious.
Tahnks
Sire
You need to let the note holder know so that you don't have to deal with Due on sale.
No that is not the reason to transer to a trust.
You transfer to a trust because.....
You want anonymity, you want to take the title out of your name and put it in the name of the trust. As the deed is the only thing recorded you preserve your anonymity and in a title search nothing comes up under your name.
As stated in the first post, this is a subject to deal and this will decrease the chances of the lienholder ever calling the note due.
Once you have control you may change trustees etc. etc. etc.
Hold on a minute....
I understand that by putting the title in the trust there is no problem from a title standpoint, i.e., you can still deliver clear title to a potential retail buyer.
I also understand that by placing the title in the trust, you have a high degree of anonymity because the title is held in the name of the trust.
However, I’m a little puzzled by the statement:
"You need to let the note holder know so that you don't have to deal with Due on sale"
By letting the note holder know of the transfer of title to the trust, I would think that would give them justification to call the loan. Perhaps not now (due to current low rates), but as rates start to rise again, I think the possibility of them calling the loan rises as well.
I know I’m a Newbie, so if I’m missing something here, let me know.
<IMG SRC="images/forum/smilies/icon_confused.gif"> [ Edited by gtowns on Date 01/28/2004 ]
There is no reason to notify the lender. It will only cause you problems. I use to do that. Some would ask for a copy of the Trust (hiding part of the documents from them-such as the Assignment of B.I is not a good idea.) some would send me out a form which had me certify that none of the reasons which trigger the due-on-sale existed. Signing your name to false statements is not smart.
Transferring title into a trust is a non-event and one of the "due-on-sale" exclusions. Let sleeping dogs lie.
I would personal never notify a lender but in all reality they more than likely won't do anything with the info. BUT why risk it.
Sire