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Foreclosure Forum |
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Re: More title holding trust Q/AIn Reply to: Re: More title holding trust Q/A posted by Ward-CA- on September 02, 2001 at 7:59 PM : 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. : : Ward: Your parenthetical note is an interesting sidestep and advancement. I assume that you get the granting from the original trustee (seller) to your successor trustee of choice immediately but record it much later. True? More follow-up questions: 1) What motivated you to try a new advancement to the trust method? Have you had lenders questioning you as trustee on the type and purpose of the trust? 2) Do you have trouble explaining what you are doing in the original DOS sidestep or your new advancement to an escrow agent? When I've done the original DOS sidestep, I usually get a quizzical look, followed by a "this seems dishonest" kind of look. 3) Also, who do you use as a title insurance company? Will they insure title taken in a trust in this manner? Do they care if your motive is anonymity and DOS prevention? Thanks Ward for being an online mentor. I look forward to your seminar in a couple of weeks. Gary Follow Ups: Post a Followup:
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