InnoVest Resource Management's Foreclosure Forum

Discussion Board Foreclosure Training Title Holding Trust Speaking Schedule Foreclosure Codes 50 State Foreclosure Basics 60+ Yrs Interest Rates News & Trends FAQ Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: More title holding trust Q/A Posted by Ward-CA- on September 02, 2001 at 7:59 PM In Reply to: Title holding trust questions - long followup question posted by Gary C. on September 02, 2001 at 11:21 AM What I understand from your response to my post is that this is unnecessary. That I should just have the lender deed the property directly into a trust where the trustee is my corporation and me as the beneficiary. If I had to produce the trust agreement to the lender, they are sure to see that title has transferred and they may elect to call the loan due. Your thoughts? =•=•=•=•=•=•=•=•=•=•=•= Gary, for years I have used the title holding trust to avoid activation of the due on sale clause, and I’ve done it as follows: 1. Have the seller transfer her title into her surnamed trust with me as the trustee (see current change) and she as the original beneficiary. While she’s still the beneficiary she sends a letter to the lender indicating that she’s transferred her title to her trust as witnessed by including in her letter a copy of the recorded transfer deed. 2. Subsequently she assigns the beneficial interest in her trust to me via a notarized assignment that isn’t recordable, in exchange for whatever consideration we’ve agreed upon. (Now however, I fear that having a differently named trustee, someone other than the homeowner/borrower might become a signature or indicator or marker to a lender that a “title holding trust” sidestep is taking place. So I have begun making the borrower both the trustee and beneficiary, to truly mimic the look of a living trust taking title and then sometime later recording a deed from the original trustee to the successor trustee that I wanted from the beginning. Furthermore, now I’m toying with the idea of using an LLC as that successor trustee). And again, I'm happy to share your enthusiasm for this stuff. Follow Ups: Re: More title holding trust Q/A Gary C. 11:01 PM, 09/04/01 (0) Post a Followup: Name : E-Mail : Subject : Comments: : What I understand from your response to my post is that this is unnecessary. That I should just have the lender deed the property directly into a trust where the trustee is my corporation and me as the beneficiary. If I had to produce the trust agreement to the lender, they are sure to see that title has transferred and they may elect to call the loan due. Your thoughts? : =•=•=•=•=•=•=•=•=•=•=•= : Gary, for years I have used the title holding trust to avoid activation of the due on sale clause, and I’ve done it as follows: : 1. Have the seller transfer her title into her surnamed trust with me as the trustee (see current change) and she as the original beneficiary. While she’s still the beneficiary she sends a letter to the lender indicating that she’s transferred her title to her trust as witnessed by including in her letter a copy of the recorded transfer deed. : 2. Subsequently she assigns the beneficial interest in her trust to me via a notarized assignment that isn’t recordable, in exchange for whatever consideration we’ve agreed upon. : : (Now however, I fear that having a differently named trustee, someone other than the homeowner/borrower might become a signature or indicator or marker to a lender that a “title holding trust” sidestep is taking place. So I have begun making the borrower both the trustee and beneficiary, to truly mimic the look of a living trust taking title and then sometime later recording a deed from the original trustee to the successor trustee that I wanted from the beginning. Furthermore, now I’m toying with the idea of using an LLC as that successor trustee). : : And again, I'm happy to share your enthusiasm for this stuff. 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

Copyright © 1997-2001, InnoVest Resource Management

InnoVest Resource Management, 4569-A Mission Gorge Place, San Diego CA 92120-4112
(619) 283-5444, Fax (619) 283-5455