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 ] Re: Trust tuning.. Posted by will on September 23, 2003 at 8:35 PM In Reply to: Re: Trust tuning.. posted by will on September 23, 2003 at 8:31 PM Ward, Read another post regarding my first question, and you answered it. Thank you. Can you shed some light on my next question? When you take the property Subject-To using a Land Trust, can the seller take out a loan or declare bankrupcy, or place any other liens or judgments after the seller assigned the beneficiary interest of the Trust to you? I assume they can't because they are not the legal owner, but can a 3rd party mistakenly put a lien or judgment or anything else that can cloud the title by accident since the only thing that is recorded is Grant Deed into the Trust(for estate planning purpose)? Thank you, Will : Thank you, Ward. : I took three steps for the THT. : 1) Have the seller creat the trust as me as the trustee of : trust and the seller as a beneficiary. : 2) Have the seller deed the property into the THT and then : record it. : 3) Have the seller assign the beneficiary interest to me. : (this doesn't get recorded). : Did I miss something? : Also, can you answer the second part of my question about bankrupcy, : judgment, and liens? : When you take the property Subject-To using a Land Trust, can the seller take out a loan or declare bankrupcy, or place any other liens or judgments after the seller assigned the beneficiary interest of the Trust to you? : I assume they can't because they are not the legal owner, but can a 3rd party mistakenly put a lien or judgment or anything else that can cloud the title by accident since the only thing that is recorded is Grant Deed into the Trust(for estate planning purpose)? : Thank you. : Best, : Will : : : : For any who uses subject to and LandTrust method, : : : I learned that when you do a Subject-To using a Land Trust, you should sign the Assignment of Beneficiary after the Grant Deed(into the Land Trust) is recorded. : : : Last time I did a deal like this, I had the seller sign LandTrust Agreement, Grant Deed, and the Assignment all on a same date and notorized them on the same date. : : : In your opinion, would it be necessary to make sure Grant Deed is recorded before the Assignment is signed? (so you can technically defend your position later if you had to when the bank tries to call the loan due since when the Grant Deed was recorded Assignment hasn't taken place thus no sales at the time or Grant Deed recording?)? : : : I am having to meet with my seller twice(once to notorize Trust Agreement and the Grant Deed, and second time to notorize the Assignment of Beneficiary). Wondering if this is really necessary. : : : Another Subject To question for my fella investors. : : : When you take the property Subject-To using a Land Trust, can the seller take out a loan or declare bankrupcy, or place any other liens or judgments after the seller assigned the beneficiary interest of the Trust to you? : : : I assume they can't because they are not the legal owner, but can a 3rd party mistakenly put a lien or judgment or anything else that can cloud the title by accident since the only thing that is recorded is Grant Deed into the Trust(for estate planning purpose)? : : : Thanks. : : =?=?=?=?=?=?=?=?=?=?= : : Will, : : Yes I'd wait until after the transfer deed putting the title of the property into the title holding trust (THT) was recorded before the Assignment of Beneficial Interest in Trust was executed. : : Notarizing the signatures on the Trust Declaration is not a requirement at law. : : You're missing the step where the seller deeds the trusteeship of his trust to your designated successor trustee. Thereafter the public record shows the successor trustee in control. The seller is not recognized as having any connection with the Trust from then on. Follow Ups: The "next question".. Ward-CA- 9:21 PM, 09/23/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : Ward, : Read another post regarding my first question, and you answered it. Thank you. : Can you shed some light on my next question? : When you take the property Subject-To using a Land Trust, can the seller take out a loan or declare bankrupcy, or place any other liens or judgments after the seller assigned the beneficiary interest of the Trust to you? : I assume they can't because they are not the legal owner, but can a 3rd party mistakenly put a lien or judgment or anything else that can cloud the title by accident since the only thing that is recorded is Grant Deed into the Trust(for estate planning purpose)? : Thank you, : Will : : Thank you, Ward. : : I took three steps for the THT. : : 1) Have the seller creat the trust as me as the trustee of : : trust and the seller as a beneficiary. : : 2) Have the seller deed the property into the THT and then : : record it. : : 3) Have the seller assign the beneficiary interest to me. : : (this doesn't get recorded). : : Did I miss something? : : Also, can you answer the second part of my question about bankrupcy, : : judgment, and liens? : : When you take the property Subject-To using a Land Trust, can the seller take out a loan or declare bankrupcy, or place any other liens or judgments after the seller assigned the beneficiary interest of the Trust to you? : : I assume they can't because they are not the legal owner, but can a 3rd party mistakenly put a lien or judgment or anything else that can cloud the title by accident since the only thing that is recorded is Grant Deed into the Trust(for estate planning purpose)? : : Thank you. : : Best, : : Will : : : : : : For any who uses subject to and LandTrust method, : : : : I learned that when you do a Subject-To using a Land Trust, you should sign the Assignment of Beneficiary after the Grant Deed(into the Land Trust) is recorded. : : : : Last time I did a deal like this, I had the seller sign LandTrust Agreement, Grant Deed, and the Assignment all on a same date and notorized them on the same date. : : : : In your opinion, would it be necessary to make sure Grant Deed is recorded before the Assignment is signed? (so you can technically defend your position later if you had to when the bank tries to call the loan due since when the Grant Deed was recorded Assignment hasn't taken place thus no sales at the time or Grant Deed recording?)? : : : : I am having to meet with my seller twice(once to notorize Trust Agreement and the Grant Deed, and second time to notorize the Assignment of Beneficiary). Wondering if this is really necessary. : : : : Another Subject To question for my fella investors. : : : : When you take the property Subject-To using a Land Trust, can the seller take out a loan or declare bankrupcy, or place any other liens or judgments after the seller assigned the beneficiary interest of the Trust to you? : : : : I assume they can't because they are not the legal owner, but can a 3rd party mistakenly put a lien or judgment or anything else that can cloud the title by accident since the only thing that is recorded is Grant Deed into the Trust(for estate planning purpose)? : : : : Thanks. : : : =?=?=?=?=?=?=?=?=?=?= : : : Will, : : : Yes I'd wait until after the transfer deed putting the title of the property into the title holding trust (THT) was recorded before the Assignment of Beneficial Interest in Trust was executed. : : : Notarizing the signatures on the Trust Declaration is not a requirement at law. : : : You're missing the step where the seller deeds the trusteeship of his trust to your designated successor trustee. Thereafter the public record shows the successor trustee in control. The seller is not recognized as having any connection with the Trust from then on. 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. Read our privacy policy.

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