Land Trust - Posted by Jason

Real Estate Investing
#1

Posted by Terry (Houston) on June 29, 2001 at 08:39:45:

If person A is holding a second it should be recorded for your protection. In that note, especially if it a owner carry back, you should have the right to cure the default.

If you have a beneficial interest in the trust you own the % you chose to that property. Yes you can make payments or whatever by giving direction to the Trustee. WHoever that may be. Whoever has beneficial interest may direct the Trustee.

How is A protected from B walking? Your not. People change their mind all the time.

#2

Land Trust - Posted by Jason

Posted by Jason on June 29, 2001 at 06:22:25:

I am studying land trusts but cannot seem to find the answer to this question:
Can two people share beneficial (sp?) rights on a trust?

I am thinking they can but need to be 100% sure.
I have tried the search engine to look through the archives but it is not working. If it was I wouldn’t bother you all with this as I am sure it is discussed somewhere here.

Thanks a ton
Jason

#3

Re: Land Trust - Posted by Jason

Posted by Jason on June 29, 2001 at 08:09:02:

Next question -
Person A has beneficial rights to Trust
Person B is paying 1st mortgage on house in Trust with person A holding second.

If person B walks on the mortgage does person A still have control of the house through the Trust or can the lender foreclose on the house. How is A protected from B walking???

#4

Re: Land Trust - Posted by Tom

Posted by Tom on June 29, 2001 at 07:03:05:

Any number of people can share bene rights.
John Smith 50%
Mary Smith 20%
Sally Smith 15%
Jim Smith 15%

#5

Re: Land Trust - Posted by Bud Branstetter

Posted by Bud Branstetter on June 29, 2001 at 21:21:35:

A clarification first. Any number can have a beneficial interest in a trust but if there are over 10 it is clasified as a security. You don’t want to go there.

Person B is personally responsible for the loan that is in his name. Person A is responsible for his indebtedness. If the second is actually recorded you have made public what the land trust tries to not publicise. Hopefully, you would have a beneficiary agreement to have a neutral 3rd party trustee and a neutral 3rd party collection service to handle the money. If the payments are not made by someone then the lender obviously will foreclose. Person B would only lose any interest they might have if you properly crafted the agreement. Do it wrong and you can have a number of problems. Bill Gatten has such an approach. Don’t try to reinvent the wheel.