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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Re-selling right after the foreclosure sale Posted by Ward-CA- on August 18, 2001 at 7:56 PM In Reply to: Selling at the Sale posted by JC on August 17, 2001 at 9:43 PM : Hi Ward! : Question. Recently, at a TS a successful bidder immediately sold the aquired property to another investor for cost + profit. They both went to a table and exchaged some documentation. What documentation would be necessary to exchange to effect the sale and transfer? Also, what steps would the seller want to take to prevent liability down the road? : Thanks, : JC =•=•=•=•=•=•=•=•=•=•=•= JC, the use of a title holding trust makes it very easy to immediately resell a property that was just bought at a foreclosure sale. All the original foreclosure buyer (OFB) does, when she gives vesting instructions to the auctioneer, as to how she wants to take title, is to tell him she’s taking title in the name of her title holding trust as follows: “Park Place LLC, Trustee of the Regency Trust, dated 08-17-01”. Then five minutes later, when the OFB decides to flip the deal to a follow-up buyer (FUB) for a quick profit, she sells the FUB 100% of the beneficial interest in her Regency trust for the amount of her cost + quick profit. Since the beneficial interest in a trust is personal property rather than real property, the sale of such isn’t recorded in the county recorder’s office. Therefore all the public record shows is that Park Place LLC, Trustee, bought the foreclosure in the name of the Regency Trust and that’s that. Sally will receive her money from the FUB in exchange for her non-recorded assignment of the beneficial interest in the trust, when the foreclosure deed is recorded. Since the trustee is an LLC, there’s no personal liability to the seller down the road. Hope this helps. Follow Ups: Trust to Trust Troy 10:14 AM, 08/20/01 (1) Re: Trust to Trust Ward-CA- 6:10 PM, 08/21/01 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : : Hi Ward! : : Question. Recently, at a TS a successful bidder immediately sold the aquired property to another investor for cost + profit. They both went to a table and exchaged some documentation. What documentation would be necessary to exchange to effect the sale and transfer? Also, what steps would the seller want to take to prevent liability down the road? : : Thanks, : : JC : =•=•=•=•=•=•=•=•=•=•=•= : JC, the use of a title holding trust makes it very easy to immediately resell a property that was just bought at a foreclosure sale. : All the original foreclosure buyer (OFB) does, when she gives vesting instructions to the auctioneer, as to how she wants to take title, is to tell him she’s taking title in the name of her title holding trust as follows: “Park Place LLC, Trustee of the Regency Trust, dated 08-17-01”. : Then five minutes later, when the OFB decides to flip the deal to a follow-up buyer (FUB) for a quick profit, she sells the FUB 100% of the beneficial interest in her Regency trust for the amount of her cost + quick profit. Since the beneficial interest in a trust is personal property rather than real property, the sale of such isn’t recorded in the county recorder’s office. : Therefore all the public record shows is that Park Place LLC, Trustee, bought the foreclosure in the name of the Regency Trust and that’s that. Sally will receive her money from the FUB in exchange for her non-recorded assignment of the beneficial interest in the trust, when the foreclosure deed is recorded. : Since the trustee is an LLC, there’s no personal liability to the seller down the road. : Hope this helps. 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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