is a trust always necessary? - Posted by nell

Posted by Lynn on November 02, 2000 at 09:00:53:

You can, but for extra privacy I use an out of state third party.


is a trust always necessary? - Posted by nell

Posted by nell on November 01, 2000 at 01:02:43:

i have a contract on a pre-foreclosure…we signed “subject to existing mortgage”…after bringing the delinquent payments current, and paying the seller some cash, we are planning on re-selling immediately…just needs minor cosmetics…in this quick turn around, selling retail, what paperwork do i need besides the purchase contract and the warranty deed, do i record it for this short period of time, or do i need to have any other paperwork to legally take title?? please advise…thanks…nell

Re: is a trust always necessary? - Posted by David Alexander

Posted by David Alexander on November 01, 2000 at 19:38:31:

Nope… what a trust does does has been stated very well by Lynn. It also however provides privacy of ownership. Keeps your name from being all over public record.

If the property goes straight into the trust then in the event something happens and the property goes from short term to long term you can keep it private.

David Alexander

Re: is a trust always necessary? - Posted by Lynn

Posted by Lynn on November 01, 2000 at 06:41:01:

All that is necessary to transfer title is the warranty deed. If you don’t record the warranty deed you will risk problems with the title.

The trust is usually used to keep the lendor from discovering that title has transfered. It is VERY unlikely that the lendor will find out just because you have transfered title. They most likely way they would find out is when they receive the change of insurance information. You don’t want to own a property without insurance, so you might consider just getting a new policy in your name without naming the lendor as loss payee.

Of course, if you are going to turn the whole thing around in less than thirty days or so, you don’t really need to worry about the due-on-sale because the lendor will never be able to do anything about it in that short time frame anyway. Plus, if they did find out and you proved to them that you had the property under contract to resell very quickly they would more than likely wait to see what happens.

Happy Investing!

Do you name yourself as Trustee?? (nt) - Posted by Brad TX

Posted by Brad TX on November 02, 2000 at 08:35:45: