Land trust/short sale
Wont the bank get excited when I, as the trustee of a land trust am short selling the property and buying it myself?
(thats a good question, right? or am I an Idiot? 
Wont the bank get excited when I, as the trustee of a land trust am short selling the property and buying it myself?
(thats a good question, right? or am I an Idiot?
If I understand this correctly, then you want to know if you can short sell your own property? If that is the question, then the answer is NO. Lenders will not allow the homeowner to do a short sale on their own property. Why would they discount your mortgage to sell it to yourself? When you short sale, the banks want to know that they are going to get paid if they short sale to the investor.
If I am wrong, then please clarify what you are trying to accomplish here?
Tanya
Another thought about this is that in order for a bank to short sale, you have to unqualify yourself from the mortgage, that you previously were qualified for. Meaning that you would have to show the bank that you dont have enough income or resources to bring the loan current.
So unfortunately, if you have the access to dollars that you could re-pay the deliquent amount, the banks normally wouldn't consider you a short sale candidate.
BAMZ
Sorry everyone, I guess I didnt explain properly.
I have found a motivated seller, and a short sale is her only hope.
She will form a land trust. She is bene. I will be trustee.
I will negotiate with the bank as trustee.
( she doesn't want to deal with it )
I guess my question is, Can I be a trustee, deal with the bank, and Buy the property from motivated seller?
Will the bank freak?
I'm not trying to do anything dishonest, but homeowner has issues,and she thinks it would be easier to just "give up and let them have it".
OR should I just forget the land trust thing and get a Limited power of attorney.
(help)
Ive heard Dwan Tyford say that a land trust is the best ( safest ) way to go.
Rich
I'm not that knowledgeable on the ins and outs of trust but from my understanding of it investors buy as LLC or land trust for the protection and also as a way of getting around the no assignment of contracts rule banks have.
The homeowner cannot short sale their own home
In order for to deal with the bank on there behalf they have to give you power of attorney
Since the bank wouldn’t allow the homeowner to short sale their own home what would be the purpose of having the homeowner form a trust if the trust couldn’t be used and they couldn’t deal with the bank anyway?
You could get the bank to discount the mortgage and buy as 123 lane trust. You could file the paperwork to form 123 lane trust and you could transfer (this is where my knowledge and terminology get fuzzy LOL!) the rights or ownership to another investor in order to flip and get around the no assignment rule without the bank knowing. The bank will think they are still dealing with 123 lane trust.
The home owner shouldn’t even be a factor in this
[ Edited by Future-Multi-millionare on Date 04/04/2003 ]
Will the bank consider doing a short sale with the buyer being a land trust? Do you sign the purchase agreement and put the HUD-1 in the name of the trust?
Karen this is something all over the net and in various REI books.
When you are buying real estate you should be buying in your corporate name. As far as the bank is concerned 123 lane trust or whatever you call it is your company name.
I've never done it personally but I've also never heard of a bank objecting to a person’s company name either.
You have to write it verbatim if you called it 123 lane trust on all the paper work.
A person can accomplish the same thing by using an LLC and transferring the rights to the next investor. I know a guy who is a contractor for the government who does all his business as such and such LLC. There are congressman who use land trust. I've even heard of land trust shielding people from child support:-o
[ Edited by Future-Multi-millionare on Date 04/04/2003 ] [ Edited by Future-Multi-millionare on Date 04/04/2003 ]
R.E.D.:
I think you're making it way too hard. Just get her to sign a purchase agreement for a short sale. The buyer on the contract will be......
"123 Main Street Trust, Your LLC as Trustee, You as Beneficiary"
Only do a trust prior to purchase if you are taking title subject to and you don't want the lender to know title is being transfered. With a short sale the lender knows title is being transfered.
Do you know what, y'all? I have read many courses and tons of net stuff but I do believe you are the first that has spelled it out on how to sign. Maybe it's a no-brainer but I hadn't figured it out, yet. I've been signing in the name of my LLC with me as member but really wanted to put it in a land trust. I don't remember anyone else just saying exactly what to sign like you did.
Much, much appreciation. Thanks <IMG SRC="images/forum/smilies/icon_biggrin.gif"> [ Edited by Karen on Date 04/04/2003 ]
My head getting inflated
It's all in the books
You can pick up these kind of things by reading William Bronchicks, Derrick Ali's and Steve Cooks (he has section in his book on it)materials