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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Taking title in a title holding trust at a trustee's sale. Posted by Ward-CA- on May 10, 2002 at 6:48 AM In Reply to: Title Holding Trust at Trustee Sale posted by Mark on May 09, 2002 at 4:07 PM : I am getting ready to purchase a property at the trustee sale (assuming it goes below my max bid price) and just have a couple of questions. I buy the property using cashiers checks (made out to me in doubled up denominations) and endorse them over to the auctioneer? Do I then give the auctioneer the name of my Title Holding Trust such as "2 East Sandbridge Trust" and then follow the steps required to form the Title Holding Trust (I purchased Bronchick's Land Trust kit)? : Also, is there any way of camouflaging the insurance change to avoid the "subject to" loan call when you buy at the trustee sale or do you just send in the payments to cure the loan? : Thanks, Mark =•=•=•=•=•=•=•=•=•=•= Endorse your checks over to the foreclosing trustee, not the auctioneer. Then wait until the auctioneer is finished with all her sales. At that point she will make out the sales receipts and ask you how you want to take title to the property. Make sure that you include the name of your trustee in the vesting of the trust. For example, Ralph Bellamy, Trustee of the 2 East Sandbridge Trust. Then, once back at your home or office you could follow the steps to actually form the trust. If you are going to flip the property as soon as possible you won’t have to worry about a senior lender calling their loan because you will be reselling the property so soon. But if you intend to keep the property as a rental then you should be interested in trying to avoid the due-on-sale clause problem. One way to avoid it is to have your insurance agent issue your new insurance policy in the name of the previous owner which they send to the lender. You will be named in a Contract For Deed Rider as the equity holder. The agent will hold the Rider in her insurance file on the property and thus know and understand that any claims made will be done in your name. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : I am getting ready to purchase a property at the trustee sale (assuming it goes below my max bid price) and just have a couple of questions. I buy the property using cashiers checks (made out to me in doubled up denominations) and endorse them over to the auctioneer? Do I then give the auctioneer the name of my Title Holding Trust such as "2 East Sandbridge Trust" and then follow the steps required to form the Title Holding Trust (I purchased Bronchick's Land Trust kit)? : : Also, is there any way of camouflaging the insurance change to avoid the "subject to" loan call when you buy at the trustee sale or do you just send in the payments to cure the loan? : : Thanks, Mark : =•=•=•=•=•=•=•=•=•=•= : Endorse your checks over to the foreclosing trustee, not the auctioneer. Then wait until the auctioneer is finished with all her sales. At that point she will make out the sales receipts and ask you how you want to take title to the property. : Make sure that you include the name of your trustee in the vesting of the trust. For example, Ralph Bellamy, Trustee of the 2 East Sandbridge Trust. Then, once back at your home or office you could follow the steps to actually form the trust. : If you are going to flip the property as soon as possible you won’t have to worry about a senior lender calling their loan because you will be reselling the property so soon. But if you intend to keep the property as a rental then you should be interested in trying to avoid the due-on-sale clause problem. : One way to avoid it is to have your insurance agent issue your new insurance policy in the name of the previous owner which they send to the lender. You will be named in a Contract For Deed Rider as the equity holder. The agent will hold the Rider in her insurance file on the property and thus know and understand that any claims made will be done in your name. 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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