Posted by REG/VA on May 09, 2006 at 24:29:11:
When you take a property Sub2 and we utilize Bronchick’s Documents, should we open a checking account and pay the contractors through the trustee for repairs? When it comes time to retail the house how should the monies be distributed on the HUD-1. I had some confussing answer between an accountant and the closing agent, both putting it on the other to answer my question. I put this deal together and a partner came up with the money to stop the foreclosure. The HUD-1 had the beneficiaries on it and checks were cut to the 2 companies that had a 50/50 beneficial interest in the trust, the trustee wasn’t cut the check. Is this right? Doesn’t this disclose on the HUD-1 who owns the trust and doesn’t this clearly breach the trust agreement.
Please help me so that I understand this process and so that I can set the accountant and the closing agents striaght on how it really should be done.
Thanks in advance
REG/VA