Posted by Matthew on September 22, 2009 at 21:15:44:
What are you trying to accomplish? payoffs? cash out?rate and term? is this an investment loan, you have more than 4 homes? where is the home located?
you might also check with the attorneys who set it up as to the legal issue.
let me know
Matthew
15 yr Pro
refinancing in a land trust - Posted by Dave
Posted by Dave on September 18, 2009 at 13:21:33:
I bought a property over a year ago with a partner. The property was put into a land trust with the partner as the trustee and both of us as beneficiaries. I contacted a lender about refinancing in my name as I have stronger credit. Of course they wanted to property taken out of the land trust which wasn’t a problem, but now they are saying that since I wasn’t the trustee of the land trust, I wasn’t the owner and thus don’t have seasoning so they can’t make the loan. I’m a bit confused by this as I understood that anyone can be your trustee. I thought “ownership” rested with the beneficiaries. Can anyone provide input on this? Thanks.
Re: refinancing in a land trust - Posted by SedonaSam
Posted by SedonaSam on December 07, 2009 at 09:39:41:
Why would you use a land trust without knowing how it works. A land
trust is the ONLY trust in which full legal and equitable title is owned
by the Trustee, NOT THE BENEFICIARIES.
This is why you should NEVER use a friend or family member as your
Trustee. An individual trustee?s failure to charge a fee would not
support the land trust?s validity in court. The attempt to charge a fee
would not be seen as adequate unless the party were a bonded entity.
An individual trustee?s death would embroil the property in his/her
own bankruptcy, Probate and other personal legal actions.
An individual would most likely never be bondable as a trustee and
would likely not have the resources to provide a completely separate,
free and bonded collection and bill-paying service.
An individual would not be seen by the courts as a standard trustee,
charging fees ?commensurate with industry standards?: therefore
severely impairing the integrity and structure of the land trust.
One?s own personal appointment would not be seen by a 2nd or 3rd
co-beneficiary as a mutually trustworthy holding entity. Such likely
bias obviously would not be in the best interests of any of the co-
beneficiaries.
I have used many land trusts and ALWAYS use a professional non-
profit entity specifically and solely engaged in the holding of titles in
land trusts. Fully staffed by full-time knowledgeable professionals.
A reasonable trustee fee is charged, which is well in line with industry
standards, enabling the creation and funding of an un-paid 3rd-party
collection & disbursement entity (a free bill paying service for the
benefit of members).
Cannot die (re. Probate issues), and is well backed financially to allow
for careful adherence to all laws. rules and regulations relative to
reporting and maintenance of a consistently good standing with the
state.
Fully bonded as a trustee for title holding, beneficiary directed, 3rd
party trustee nominee title-holding land trusts.
Fully recognized as a bona fide holding institution by any court that
would/might be challenging the integrity and structure of the land
trust or holding to adherence to statute and or standards in states
wherein land trusts per se are specifically legislated and authorized
Functions a fully unbiased and unassociated third-party title holder
(?escrow-type)? holding entity.
If you are going to play the game, you MUST know ALL the rules.