Posted by Ren on June 26, 2001 at 14:50:07:
I’ve already talked with the Attorney & the Lender to verify the balance. Checked the comps. Also ordered a title search. Should hear back from them by noon Wed. I just wanted to be ready to pounce when I got the green light. After Wed., the reinstatement figures increase.
Due on Sale and Preforeclosure - Posted by Ren
Posted by Ren on June 25, 2001 at 21:18:42:
Are the chances greater for a lender to keep an eye on the title or even notice that title has changed during a foreclosure? I ask because I haven’t received my Nuts & Bolts pkg yet but I have an owner who will sign whatever I give her to take away her home. She’s already signed a QuitClaim. I’m just hesitant to record it for fear of the lender calling the loan due.
Also, what if the lender called it due. How long would they give to pay it off?
Re: Due on Sale and Preforeclosure - Posted by Bill Gatten
Posted by Bill Gatten on June 25, 2001 at 22:05:26:
Question #2…90 days.
Why not avoid the DOS buy putting the property into land trust and merely becomiong its/a beneficiary?
Bill (Don’t Kknow Nuthin’ 'bout No PACTrust) Gatten
That’s what I wanted but time wont allow - Posted by Ren
Posted by Ren on June 26, 2001 at 09:16:30:
Already have a Quitclaim & Downloaded the trust agreement while waiting to receive the full pkg in the mail. Would it be okay to just record the trust and then do everything else when I receive it?
Re: That’s what I wanted but time wont allow - Posted by Bill Gatten
Posted by Bill Gatten on June 26, 2001 at 18:15:41:
Sure, you can do that. Just make sure that it?s done properly so that there is no difficulty in the final conveyance.
Some major risks when using land trusts include:
The trust being later characterized as a disguised security agreement, equitable mortgage, association, partnership, corporation or businesses trust.
Unless you are not concerned about Due-on-Sale clause issues (then it doesn’t matter), be sure that the seller remains on the trust as “a” beneficiary (for at least a 10% beneficiary interest), and does not openly relinquish its power of direction (“voting rights”): as doing so could constitute justification for full conveyance tax and property tax reassessment
Make sure the trustee charges a fee (commensurate with “industry standards”) and that any collection service engaged by the beneficiaries does NOT charge a fee (would constitute an ?association,? which would be double taxed as a corporation). The trustee?s not charging a fee could constitute characterization and a general partnership opening the beneficiaries up to liability beyond the trust property.
Bill Gatten
You don’t… - Posted by David Alexander
Posted by David Alexander on June 26, 2001 at 11:57:26:
record the trust it is a private document…
I would suggest you find someone knowledgeable in your area work something out with them (maybe flip the deal… No Risk), even partner for a 50/50 split it’s better than nothing and the knowledge of the transaction and paperwork gained would be worth it.
Although I believe jumping in is great if your not careful your going to get creamed. I’ve not once heard you mention a title report, checking loan balances etc.
Just had a friend a recently reinstate loan before the folks moved out… they filed bankruptcy and are now living on his dime.
Just my thoughts.
David Alexander
Re: That’s what I wanted but time wont allow - Posted by Lazaro
Posted by Lazaro on June 26, 2001 at 09:34:51:
Why don’t you deed it over to the trust? Have her sign a warrantty deed deeding the property to the trust. Hope that helps.
Cordially,
Lazaro