Trustee And Surplus Funds At Sheriff's Sale
Several months ago I contracted a Subject To Purchase of a high ticket estate.
Used a Trust, and the Warranty Deed to Trustee was recorded at the time to avoid Title seasoning issues when selling.
The rest of the paperwork is pretty solid and "approved" for these type of transactions.
While our buyers were getting their act together, the original owners, husband and wife, have a falling out. Not only do they fight each other, but they also refused to give us and our buyers-to-be access to the property.
All contact was broken off, but dutifully we kept leaving messages on their answering machine about once a week.
It all ended when the house went to Auction before Christmas, and was sold to the highest bidder.
Now here's the interesting part.
It sold for considerable more than the the Bank needed, and the Trustee, who is on the Deed as the Owner, has since been contacted by a Lawfirm offering their services to do the paperwork to get the surplus funds released to him.
It all seems pretty cut and dried; it is owned bu the Trust, and therefor the excess proceeds should go to the Trust.
Or am I missing something?
Does the previous owner have any "rights" to these funds?
Are there any legal considerations that I'm not aware of?
Oh, and yes, there's an ethical side to this of which I'm 100% aware, but this question is just intended to cover the Legal aspects of this situation.
Thanks in advance for any input on this.
[addsig]
Legally the Trust is the remainder Agent and Beneficiary.
Ethically I'd pay up fair and square After costs.
Derrick,
Thanks for the prompt reply.
And yes, if and when I collect there'll be a surprisingly large check for the previous owners.
But you agree with me then that it is the Trustee who must collect the Funds and not the persons named on the Note.
The reason is that when I contacted the County on a no-names basis, they insisted that they will deal only with the "defendant", whoever that party may be.
Never too old to learn in this business...
[addsig]
Lawfully the Defendant has granted you a POA as Trustee if not in addtn. to a QCD.
This should suffice in showing you as the Remainder Agent Beneficiary.
Did you file and Affidavit of Trustee's Consent of Powers & Direction??