Posted by colvegas on January 16, 2006 at 01:21:12:
Josh,
I work with trusts and from what you posted this trusts were most likely fraudulent or abusive trusts in that they were not legally setup properly. The way the trustee vested title back to himself…??? red flag just went up… that is one reason why your trustee should be for longer holds on property a 3rd party preferably non-profit out of state corporation operating at a arms length directed via the trusts beneficiaries not himself…???
I would let the house go to foreclosure and try to buy it back at auction and negotiate/discount the liens owed on the property.
If I can give more insight on the trust side let me know. You can email me at colvegas07@hotmail.com
Experts please help! (sorry if this sounds confusing)I partnered up with another investor who was supposedly experienced at doing subject 2’s. I put up the money and he was supposed to do all the work. The numbers worked for me (135k mortgage+15k back payments+40k repair= 250k after repair value) He did all the paper work necessary but didn’t do a good title search. This is the issue…there are 35k in leins on the property and there is an issue of some possible fraudulant deed transfer in the past. The house was in a trust and the trustee and mortgage holder(same person) died in 04 and the successor trustee had made the payments until 05 before going into foreclosure then we came along and did the whole subject 2 thing. Well back in 04 when the successor trustee was named he deeded the house from the trust to himself personally. Because we have no documentation that he was the beneficiary of the trust we can’t determine if that was legal for him to do. Because of this no buyer can get title insurance. So I have contacted an attorney and he recommends we do a quiet title action which will cost 5k and could take up to a year by that time I will have paid in another 15k in payments. I thought about letting the house go back to foreclosure and hopefully buying it for what is owed and having the junior leins wiped out and getting clear title that way. Atleast then I would have some room for profit. After foreclosure can you get title insurance? Thanks for reading all of this and any help or direction would be appreciated. Also if you need more info please email me and I’ll try to clear up things better.