InnoVest Resource Management's Foreclosure Forum

Home Discussion Board "Hands-On" Training Title Holding Trust Speaking Schedule Store Foreclosure Codes 50 State Resource Data Foreclosure Glossary Foreclosure Statistics 60+ Yrs Interest Rates Fillable Forms Archived Articles Dingbat Retirement Plan Links Contact / Map Home

[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Hide behind your trustee.. Posted by Ward-CA- on May 23, 2003 at 10:11 PM In Reply to: Purchase and Certification of Trust posted by linda - CA on May 22, 2003 at 9:59 AM : Hi Ward, : We're trying to purchase our first rental and want to hold it in a THT. We will be the trustees and beneficaries for this trust. If I understand it correctly, the trustee in a THT does not have the power to do anything without the approval of the beneficiaries. In the certification of trust, question #4 asks whether the trustee has the power to sell, convey or exchange and whether the trustee has the power to borrow money and encumber property with a deed of trust. The lender, Washington Mutual, says that we've to answer "yes" otherwise we can't sign the loan papers (kinda made sense to me). : My question is: Should we answer yes to that question, and will it matter later since we would like to transfer our beneficial interest to our LLC? If we answer yes, will our transfer of beneficial interest be valid? : Thanks so much!!! =•=•=•=•=•=•=•=•=•=•=•= Linda, One of the greatest attributes of the THT (Title Holding Trust) is its incredible privacy. If you simply have someone else act as your trustee then your name won’t appear in the public record regarding that property. Your trustee’s name will appear on the grant deed and deed of trust, not yours. So, so much for privacy when you act as your own trustee. The THT is known as a directional holding trust. That’s because the trustee is unable to sign any document that affects the title or equity of the trust’s property without the express, written direction from the majority of beneficiaries-in-interest to do so. So in my version of the Certification of Trust, item number 4 states that the trust is a directional holding trust and as such the trustee doesn’t have the independent ability to sign documents affecting the title or equity of the trust’s property without the written direction from the beneficiaries beforehand. I have 6 loans with Wells Fargo Bank and on all 6 properties my name has never appeared in the public record. My trustee appears on the deeds and trust deeds whereas I qualified for the loans and signed the non-recorded promissory notes. As far as your answer to #4 is concerned, it won’t have any effect on your future ability to transfer your beneficial interest in your trust. Hope this helps. Follow Ups: Re: Hide behind your trustee.. jenv 6:32 PM, 06/23/03 (1) Wish me luck... Ward-CA- 0:27 AM, 06/24/03 (0) Re: Hide behind your trustee.. SeanW 8:27 AM, 05/24/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : Hi Ward, : : We're trying to purchase our first rental and want to hold it in a THT. We will be the trustees and beneficaries for this trust. If I understand it correctly, the trustee in a THT does not have the power to do anything without the approval of the beneficiaries. In the certification of trust, question #4 asks whether the trustee has the power to sell, convey or exchange and whether the trustee has the power to borrow money and encumber property with a deed of trust. The lender, Washington Mutual, says that we've to answer "yes" otherwise we can't sign the loan papers (kinda made sense to me). : : My question is: Should we answer yes to that question, and will it matter later since we would like to transfer our beneficial interest to our LLC? If we answer yes, will our transfer of beneficial interest be valid? : : Thanks so much!!! : =•=•=•=•=•=•=•=•=•=•=•= : Linda, : One of the greatest attributes of the THT (Title Holding Trust) is its incredible privacy. If you simply have someone else act as your trustee then your name won’t appear in the public record regarding that property. Your trustee’s name will appear on the grant deed and deed of trust, not yours. So, so much for privacy when you act as your own trustee. : The THT is known as a directional holding trust. That’s because the trustee is unable to sign any document that affects the title or equity of the trust’s property without the express, written direction from the majority of beneficiaries-in-interest to do so. : So in my version of the Certification of Trust, item number 4 states that the trust is a directional holding trust and as such the trustee doesn’t have the independent ability to sign documents affecting the title or equity of the trust’s property without the written direction from the beneficiaries beforehand. : I have 6 loans with Wells Fargo Bank and on all 6 properties my name has never appeared in the public record. My trustee appears on the deeds and trust deeds whereas I qualified for the loans and signed the non-recorded promissory notes. : As far as your answer to #4 is concerned, it won’t have any effect on your future ability to transfer your beneficial interest in your trust. : : 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

Information provided by this website is for informational purposes only and is not a substitute for professional advice. Please consult your investment advisor and/or attorney before entering into any transaction.

Copyright © 1997-2003, InnoVest Resource Management
http://www.foreclosureforum.com

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