Foreclosure Is In A Land Trust - Who Do I Approach Before Auction?
Hi all,
I am interested in a property that is supposedly going to auction in 7 days. It is held in a land trust. The beneficiary is a "friend" that doesn't know that I know her condition. She'd be embarrassed to tears. Who do I approach? I haven't got much time. Any advice? 
What do you plan on doing with the property?
Tom
Its commercial - high appreciation area. I want to keep it long term.
you mentioned she was your friend why not look for another deal and not hurt your friend any further this is what you should do
You don't feel that keeping a foreclosure off of her credit report would be helping her?
If you are going to approach anyone, approach the person on title -- the trustee.
If she your girlfriend it could be trouble.
Dear Beth,
In situations like this you follow the form and intent of the instrument that holds title.
The Trustee of the Trust has been given the job and that is the person you now contact. Deal with him-her-it.
Perhaps in the course of negotiation you may come in contact with the Beneficiary your friend. At that time you extend to her the hand of help. This same hand is the one in negotiation. Work for the common good of both of you. If you can protect her flagging credit by moving the ownership of this property under the protection and comfort of your wing, why do so, but explain.
Take notes I would really like to learn how to do what you are doing.
In anticipation of a Win/Win. Lucius
With only 7 days to go, you can't miss a beat now. Contact the Trustee immediately and see what (if anything) can be done. Also, see if it's worth your while to do anything.
Weighing the finacial gain against the potential friendship loss will be your decision.
I would talk with your friend. You can have her assign her interests in the trust over to you. Change the trustee and make up the backpayments. You have to do this before the auction. So, is this worth talking to your friend or not? Only you can make the decision.
Tom
I am not trying to swindle her...All these months I read what everyone on this site describes as win/win and helping people in a bad spot. After reading these responses I feel totally guilty for even entertaining the idea of buying fron her before the sale. She will not get her equity - so. She will be able to go buy something else a lot sooner than if she had a foreclosure on the books. I don't want my name to be mud...but after all she is the one who has been pocketing rents for 2 years (commercial property) and not paying the mortgage. How bad should I really feel here?!
FYI - I was at the courthouse and the file was pulled from auction. There was no explanation in the file but it said "cancelled per order" in the computer. Any ideas where to go next?
hi miss bethe
with the cancel order in effect this could be a number of things, but usually a re-structure or pending sale with intent and proof of funds is the number one reason..you should still try and contact the trustee..does your friend know that you are a REI and help people out of sticky situations?? if not yu should show her compassion about some other deal you performed where help and salvation are your key words..she might see this and approach you..ya never know..good luck
regards-pat
BethE,
I thought you were planning another wine tasting party with her? Nows the time!
BAMZ
I caved in and decided to call her today. We talked for almost and hour and yes made a date to leave the kids at home w/ hubbies and go have some wine! I could not bring myself to mention the foreclosure. What a wimp! I am really interested in this line of REI but may not be up to it. Maybe if I didn't know her I could manage. And to think I'm a "tough as nails" landlord! My friend had a sweet pre-sale deal going contract in hand, and they sold it to someone else while he was doing title work - bummer.