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Foreclosure Forum |
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Trust to TrustIn Reply to: Re: Re-selling right after the foreclosure sale posted by Ward-CA- on August 18, 2001 at 7:56 PM =•=•=•=•=•=•=•=•=•=•=•= : 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. =•=•=•=•=•=•=•=•=•=•=•= Ward, taking title via the Title Holding Trust is becoming much clearer. Let me ask you a couple different questions: 1. In the above example, let's say the FUB (follow-up buyer) wanted to place the property in their family trust and take it out of the Regency Trust? How would he do this? 2. Or, let's say that the FUB had one LLC which encompassed all his properties, and all of his properties were held in trust. Could the FUB take title to this new property acquired from the OFB as the Trustee of his LLC? And if so, I assume that the Regency Trust would still survive, and that you would want it to. It's just that now it is controlled by his LLC, not the OFB's. In this first question, the property transfers between trusts, right? In the second question, the property remains in the same trust, but control transfers between two different LLC's, correct? What is the difference and pros/cons between a family trust and LLC?
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