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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: One way to skin a cat... Posted by Ward-CA- on November 19, 2001 at 8:45 PM In Reply to: Process of Ownership Change posted by Troy Nichols on November 19, 2001 at 11:20 AM : When a person strikes a deal with the owner of a home that is only days away from being sold at a Trustee Sale, what does this new owner need to do to ensure and secure his position as the new owner? : Let's assume that the new owner is taking ownership "subject to" the existing loans, and that the old owner of the home did not hold title in a trust, but the new owner will hold title in a trust. What needs to happen in order of priority if this happens the day before a sale? : I'll take a stab at it, first ... then, you can correct me where I'm wrong: : 1. Stop the Trustee Sale (but, I'm not exactly sure what the Trustee specifically needs to do so) : 2. Cure the delinquencies : 3. Create a trust (maybe this one should have been first): : a. I am the the trustee, the soon to be ex-owner is trustor and beneficiary : b. Notify the lenders of the change : c. Record the trust at the county recorder's office (use a quit claim to do this?) : 4. Buyout the owner's beneficial interest in the trust and name myself as the beneficiary (I assume I do not need to notify anyone or record this change anywhere) : 5. Take pictures of the home : 6. Buy insurance : Thanks for the help. =?=?=?=?=?=?=?=?=?=?= Troy, here?s the way we do this triple, backward flip off a trapeze, 60 feet up, with no safety net and blindfolded?one day before the trustee?s sale: 1. Help the owner file an emergency bankruptcy petition in Chapter 13 at the local federal courthouse and notify the foreclosing trustee of the filing before the trustee?s sale. In most instances this will cause the trustee into a knee jerk reaction of postponing the scheduled trustee?s sale for thirty days. That?s because that?s about the earliest the lender?s bankruptcy attorney can wangle a hearing on their motion for relief from the trustor?s automatic stay. 2. Write the deal up with the owner per the dictates of California?s Civil Code Section 1695. That means executing an Equity Purchase Contract that incorporates the mandates of 1695 and adhering to its 5 day restraint against giving or accepting anything of value, prior to the expiration of the owner?s right to cancel. 3. Have the owner transfer their title to the property into a title holding trust via a deed, naming my nominee as the trustee of the trust that?s bears the owner?s surname. 4. Have the owner/beneficiary write a letter to both her lender and insurance carrier, informing them of the transfer to the owner?s trust and enclosing a copy of the transfer deed and a copy of a contemporaneous Certification of Trust, filled out and signed by the trustee. 5. After the right to cancel expired and the owner had vacated the premises, I would purchase 100% of the owner?s beneficial interest in the trust in exchange for the agreed upon consideration enumerated in the equity purchase contract. 6. Reinstate the loan in foreclosure via a cashier?s check drawn on the trust?s bank account and reinstate the insurance if it?s not been canceled. If so, get new insurance and have the insurance company send the required copy to the lender. 7. Allow the incomplete bankruptcy filing to suffer an automatic dismissal due to failure of its completion within the proscribed 15 days following the initial filing. Please note that you never, never, never, never, never record any trust, any time, anywhere. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : When a person strikes a deal with the owner of a home that is only days away from being sold at a Trustee Sale, what does this new owner need to do to ensure and secure his position as the new owner? : : Let's assume that the new owner is taking ownership "subject to" the existing loans, and that the old owner of the home did not hold title in a trust, but the new owner will hold title in a trust. What needs to happen in order of priority if this happens the day before a sale? : : I'll take a stab at it, first ... then, you can correct me where I'm wrong: : : 1. Stop the Trustee Sale (but, I'm not exactly sure what the Trustee specifically needs to do so) : : 2. Cure the delinquencies : : 3. Create a trust (maybe this one should have been first): : : a. I am the the trustee, the soon to be ex-owner is trustor and beneficiary : : b. Notify the lenders of the change : : c. Record the trust at the county recorder's office (use a quit claim to do this?) : : 4. Buyout the owner's beneficial interest in the trust and name myself as the beneficiary (I assume I do not need to notify anyone or record this change anywhere) : : 5. Take pictures of the home : : 6. Buy insurance : : Thanks for the help. : =?=?=?=?=?=?=?=?=?=?= : Troy, here?s the way we do this triple, backward flip off a trapeze, 60 feet up, with no safety net and blindfolded?one day before the trustee?s sale: : 1. Help the owner file an emergency bankruptcy petition in Chapter 13 at the local federal courthouse and notify the foreclosing trustee of the filing before the trustee?s sale. In most instances this will cause the trustee into a knee jerk reaction of postponing the scheduled trustee?s sale for thirty days. That?s because that?s about the earliest the lender?s bankruptcy attorney can wangle a hearing on their motion for relief from the trustor?s automatic stay. : 2. Write the deal up with the owner per the dictates of California?s Civil Code Section 1695. That means executing an Equity Purchase Contract that incorporates the mandates of 1695 and adhering to its 5 day restraint against giving or accepting anything of value, prior to the expiration of the owner?s right to cancel. : 3. Have the owner transfer their title to the property into a title holding trust via a deed, naming my nominee as the trustee of the trust that?s bears the owner?s surname. : 4. Have the owner/beneficiary write a letter to both her lender and insurance carrier, informing them of the transfer to the owner?s trust and enclosing a copy of the transfer deed and a copy of a contemporaneous Certification of Trust, filled out and signed by the trustee. : 5. After the right to cancel expired and the owner had vacated the premises, I would purchase 100% of the owner?s beneficial interest in the trust in exchange for the agreed upon consideration enumerated in the equity purchase contract. : 6. Reinstate the loan in foreclosure via a cashier?s check drawn on the trust?s bank account and reinstate the insurance if it?s not been canceled. If so, get new insurance and have the insurance company send the required copy to the lender. : 7. Allow the incomplete bankruptcy filing to suffer an automatic dismissal due to failure of its completion within the proscribed 15 days following the initial filing. : Please note that you never, never, never, never, never record any trust, any time, anywhere. : : 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

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