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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Fine tuning... Posted by Ward-CA- on November 22, 2003 at 11:05 PM In Reply to: Re: This is easy... posted by Jim on November 22, 2003 at 2:32 PM : Ward, : Thanks for your excellent "how-to" on the bankruptcy details, but I wasn't able to put it together before the auction. : However, the gods were smiling at the auction yesterday. The property sale was postponed until next Wednesday 11/26 because of "Trustee Discretion". When I heard that, my sullen expression changed from night to day. : I ordered a title report even though I've been researching at the Recorder's office for around a year now. Call it cheap insurance for this...my first deal. I ordered a home inspection for Monday. I got the $2,000 cashiers check and will get the grant deed signed, notarized, and recorded on Monday. The owner will be calling the defaulted lender to get the cure amount and preferred manner of payment on Monday. I asked her to get the lender's bank routing so that her Trust's trustee (my LLC) could wire the delinquent cure funds directly to the account. : The Certificate of Trust, Grant Deed, and Alternate Grant Deed are all ready to go through the process. : Questions: : 1. What minimal timeframe should there be between signing/notarizing/recording the Grant Deed and getting the ABI signed/notarized? : 2. Would it be unreasonable to have the Grant Deed and ABI done on the same day, but by different notaries? Why again the use of two different notaries? : Thanks for your help, : Jim ============================ Jim, I don’t know what your title report cost you. But compare that cost with that charged at www.lotbook.com. You need to have your seller execute a Certification of Trust rather than a “Certificate of Trust”. Because of a directive I saw from Wells Fargo in July, insisting that the seller be her own trustee when transferring from herself to her trust, we have reverted to using two deeds rather than one. Let’s call the property owner Judy Brown. The initial deed would go from Judy Brown to Judy Brown, Trustee of the Brown Trust. It would show a transfer tax that reads as follows: “-0- Transfer to a revocable trust” Upon recording the initial deed at the recorder’s office get a certified or conformed copy of it for your records. Make a copy of your copy and mail it to the lender along with a copy of the Certification of Trust (COT) that Judy Brown filled out and signed in front of a notary public. The COT should show that Judy is her own trustee and it should have Judy’s SSN as the trust’s tax ID number. The reinstatement payment shouldn’t show you as the trustee at this juncture. It should show Judy as her own trustee. Then a day or so after Judy has sent off her letter to her lender have her execute another deed as follows: Grantor “Judy Brown, Trustee of the Brown Trust” Grantee “Jim Buyer, Successor Trustee of the Brown Trust” Record the 2nd deed and get a certified or conformed copy for your file (don’t send it to anyone). It’s at this point you buy 100% of Judy’s interest in her trust using the Assignment of Beneficial Interest in Trust (ABI isn't recorded). #1. Two days later is fine. #2. The wait of a few days makes it look like the transfer of the property into the trust and then later the sale of the beneficial interest in the trust to be two separate happenings. #3. The use of two different notaries is done where there’s a notarized grant deed going to you and then a notarized Affidavit of Deed is executed by the seller, averring that the deed was executed without any coercion or duress. Follow Ups: Re: Fine tuning... Jim 6:11 PM, 11/23/03 (1) Check processing is automatic... Ward-CA- 9:35 AM, 11/27/03 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : : Ward, : : Thanks for your excellent "how-to" on the bankruptcy details, but I wasn't able to put it together before the auction. : : However, the gods were smiling at the auction yesterday. The property sale was postponed until next Wednesday 11/26 because of "Trustee Discretion". When I heard that, my sullen expression changed from night to day. : : I ordered a title report even though I've been researching at the Recorder's office for around a year now. Call it cheap insurance for this...my first deal. I ordered a home inspection for Monday. I got the $2,000 cashiers check and will get the grant deed signed, notarized, and recorded on Monday. The owner will be calling the defaulted lender to get the cure amount and preferred manner of payment on Monday. I asked her to get the lender's bank routing so that her Trust's trustee (my LLC) could wire the delinquent cure funds directly to the account. : : The Certificate of Trust, Grant Deed, and Alternate Grant Deed are all ready to go through the process. : : Questions: : : 1. What minimal timeframe should there be between signing/notarizing/recording the Grant Deed and getting the ABI signed/notarized? : : 2. Would it be unreasonable to have the Grant Deed and ABI done on the same day, but by different notaries? Why again the use of two different notaries? : : Thanks for your help, : : Jim : ============================ : Jim, : I don’t know what your title report cost you. But compare that cost with that charged at www.lotbook.com. : You need to have your seller execute a Certification of Trust rather than a “Certificate of Trust”. : Because of a directive I saw from Wells Fargo in July, insisting that the seller be her own trustee when transferring from herself to her trust, we have reverted to using two deeds rather than one. : Let’s call the property owner Judy Brown. The initial deed would go from Judy Brown to Judy Brown, Trustee of the Brown Trust. It would show a transfer tax that reads as follows: : “-0- Transfer to a revocable trust” : Upon recording the initial deed at the recorder’s office get a certified or conformed copy of it for your records. Make a copy of your copy and mail it to the lender along with a copy of the Certification of Trust (COT) that Judy Brown filled out and signed in front of a notary public. : The COT should show that Judy is her own trustee and it should have Judy’s SSN as the trust’s tax ID number. : The reinstatement payment shouldn’t show you as the trustee at this juncture. It should show Judy as her own trustee. : Then a day or so after Judy has sent off her letter to her lender have her execute another deed as follows: : Grantor “Judy Brown, Trustee of the Brown Trust” : Grantee “Jim Buyer, Successor Trustee of the Brown Trust” : Record the 2nd deed and get a certified or conformed copy for your file (don’t send it to anyone). It’s at this point you buy 100% of Judy’s interest in her trust using the Assignment of Beneficial Interest in Trust (ABI isn't recorded). : #1. Two days later is fine. : #2. The wait of a few days makes it look like the transfer of the property into the trust and then later the sale of the beneficial interest in the trust to be two separate happenings. : #3. The use of two different notaries is done where there’s a notarized grant deed going to you and then a notarized Affidavit of Deed is executed by the seller, averring that the deed was executed without any coercion or duress. 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

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