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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Ward, Rick(the Probate Guy), Craig(in L.A.)... Please help! Posted by Craig in LA on September 02, 2006 at 8:05 PM In Reply to: Ward, Rick(the Probate Guy), Craig(in L.A.)... Please help! posted by Jerry - Ca. on September 02, 2006 at 11:12 AM : Hi Ward and Gang: : I have a question as to whether or not an Equity Purchase Form (E.P.A.) is required under the following circumstances. It is a default/foreclosure bail-out during the 21 day sale period. I strike a deal with the default owner for 50% of the beneficial interest in a Trust. Proceeds from the Assignment of the Beneficial Interest in the Trust will be used for paying the delinquent lender/trustee fees and costs of the Trust's property. : This will be done by having seller transfer ownership to Title Holding Trust(THT) with s/he as trustee and then using an ABI form to transfer the 50% ownership of beneficial interest to me and making me or my LLC the successor trustee on recorded deed and then paying the delinquent loans, etc.. : The twist here is that the default owner is not vacating the property, but rather renting/leasing the property back for 6-12 months before selling. A separate lease/rental agreement is signed between the Trust with me as trustee/Beneficiary and tenant(former default owner/Trust Beneficiary). : Your E.P.A. sample form does not seem to fit this circumstance. There is no sale of Real property... only personal property (the beneficial interest). The termination of the trust agreement : amount of Beneficial Interest to be split won't be determined until the end of the rental agreement which coinicides with the with the sale of the Trust's Property. : : : Do I need to use an E.P.A. Form ... ? : : Any advice or opinions will be appreciated! : : Jerry I will take first crack at this. If the owner is foreclosure I use and equity purchase agreement because if the deal unravels that is the document the lawyers expect to see. Anything not a simple pack and move deal is covered by a seperate addendum where the deal is spelled out in really simple words and the homeowner in foreclosure initials and signs the attendum. So my input would be to use the equity purchase agreement. I am not a big fan of having the owner in foreclosure stay in the property under any circumstances. It smells of a leaseback arrangment and predatory lending and I don't want to be in court. So if the owner is not willing to leave within a few days I pass on the deal. I realize I leave money on the table in some deals, but I have not had one explode yet. I would be real careful here, use the EPA form,document the crap out of this, and tape your conversations with the owner in foreclosure where you go over every nuance of the papers with him on tape and be sure that he understands this and then keep the bloody tape. The farther you go away from the mainstream the higher the liklihood of getting popped so having your ducks in a row really matters. You also may want to videotape your final meeting with the homeowner in foreclosure to go over the deal on camera so everyone understands it, smiles at the camera and says they do understand it. Open your tape with an introduction of the parties and hold up that day's Times, WSJ, USA Today or a good newspaper so nobody can claim the tape was backdated. Good luck on this one. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Hi Ward and Gang: : : I have a question as to whether or not an Equity Purchase Form (E.P.A.) is required under the following circumstances. It is a default/foreclosure bail-out during the 21 day sale period. I strike a deal with the default owner for 50% of the beneficial interest in a Trust. Proceeds from the Assignment of the Beneficial Interest in the Trust will be used for paying the delinquent lender/trustee fees and costs of the Trust's property. : : This will be done by having seller transfer ownership to Title Holding Trust(THT) with s/he as trustee and then using an ABI form to transfer the 50% ownership of beneficial interest to me and making me or my LLC the successor trustee on recorded deed and then paying the delinquent loans, etc.. : : The twist here is that the default owner is not vacating the property, but rather renting/leasing the property back for 6-12 months before selling. A separate lease/rental agreement is signed between the Trust with me as trustee/Beneficiary and tenant(former default owner/Trust Beneficiary). : : Your E.P.A. sample form does not seem to fit this circumstance. There is no sale of Real property... only personal property (the beneficial interest). The termination of the trust agreement : : amount of Beneficial Interest to be split won't be determined until the end of the rental agreement which coinicides with the with the sale of the Trust's Property. : : : : : Do I need to use an E.P.A. Form ... ? : : : Any advice or opinions will be appreciated! : : : Jerry : : I will take first crack at this. If the owner is foreclosure I use and equity purchase agreement because if the deal unravels that is the document the lawyers expect to see. Anything not a simple pack and move deal is covered by a seperate addendum where the deal is spelled out in really simple words and the homeowner in foreclosure initials and signs the attendum. So my input would be to use the equity purchase agreement. : I am not a big fan of having the owner in foreclosure stay in the property under any circumstances. It smells of a leaseback arrangment and predatory lending and I don't want to be in court. So if the owner is not willing to leave within a few days I pass on the deal. I realize I leave money on the table in some deals, but I have not had one explode yet. : I would be real careful here, use the EPA form,document the crap out of this, and tape your conversations with the owner in foreclosure where you go over every nuance of the papers with him on tape and be sure that he understands this and then keep the bloody tape. The farther you go away from the mainstream the higher the liklihood of getting popped so having your ducks in a row really matters. You also may want to videotape your final meeting with the homeowner in foreclosure to go over the deal on camera so everyone understands it, smiles at the camera and says they do understand it. Open your tape with an introduction of the parties and hold up that day's Times, WSJ, USA Today or a good newspaper so nobody can claim the tape was backdated. : Good luck on this one. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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