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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: What to do... Posted by Rick on February 22, 2004 at 10:02 PM In Reply to: What to do... posted by Ward-CA- on February 22, 2004 at 1:58 PM : : Seller had already filed a Chap.13, but had apparently messed it up since the house is scheduled to be auctioned next week. : : We agreed on terms on 2/19/04(50/50 net equity split)and signed an EPA. Sale is scheduled for 2/26. : : - How do I stop the sale? I have the $30k cash needed to reinstate, so that is no problem, but I'm worried how to protect myself. Does the BK court still need to be involved and how do I handle that part? : : -Should I get the seller (only one person on title) to sign a deed today, before the 5 day right of cancellation is up? : : -AND I want to use a THT to keep insurance and financing in place. : : I'm confused as to what I should do, and time is definately of the essence. : ================= : Rick, : Let’s tackle the trust first. All you need to put a Title Holding Trust (THT) in place is a grant deed that transfers title from the owner to the owner as trustee of their own trust. : If the owner is June Brown then you’d have “June Brown” deed the property to “June Brown, Trustee of the Brown Trust, dated 2-23-04”. : You’d copy the legal description off of a trust deed or current deed to the property. The Customer Service department of a local title company will fax to you, free of charge, a copy of the current deed to the property. Tell them you need all pages of the deed. Otherwise they just might fax you the face sheet only. : The transfer tax designation on the new deed would read “-0- transfer to a revocable trust”. : Make the return mail address the Brown Trust at the old address. : Have June Brown sign the deed in front of a notary public and then take it to the county recorder’s office and record it. Get a certified copy of the recorded deed at that time. Also, at that time you will have to fill out a Preliminary Change of Ownership Report (PCOR). Though it has four parts, the only part you’ll need to fill in is Part I. Just check “No” for all questions except H-2. That one you should check “Yes”. : Then put a giant X through Part II and Part III and Part IV and then have June Brown sign and date it. : The balance of the trust declaration can follow in a couple of days or so when you have time pull it together. You won’t need to show it to anyone for a while...so next, focus on stopping the foreclosure auction. : Have June call the foreclosing lender and ask how she can reinstate all the back payments plus penalties and costs before the auction. Have her get the precise payment amount and where she can pay it locally. Since time is so short would they allow her to pay it to the foreclosure auctioneer in Cashier’s Check form prior to the sale? : The 5 Day cooling off period automatically ends at 8:00 AM on the scheduled day of the sale. At that point you and the seller are free to give each other anything of value. So June Brown, Trustee of the Brown Trust, dated 2-23-04 can sign a notarized trust deed and promissory note to you after 8:00 AM on 2-26-04 for the $30K you’re putting up for the reinstatement. : Next, you need to get June Brown formally dismissed from bankruptcy so that the deed you get from her doesn’t need the approval of the bankruptcy trustee and judge (will make your title company happy). So have her file with the bankruptcy court a form, Debtor Request For Dismissal From Bankruptcy. : When the emancipated June Brown gives you your deed you can pay her what you’ve promised and also reconvey the trust deed for the $30K. : : Hope this helps. Let me see if I understand the timing of payment and my exposure. If I pay the $30K on Tuesday, but the cooling off period isn't over until Thursday, am I in violation of the law, since I can't give anything of value until Thursday? And how do I guarantee they don't back out between Tuesday and Thursday, since I don't/can't get the deed and promisory note until Thursday? Follow Ups: Make a secured loan... Ward-CA- 10:47 PM, 02/22/04 (4) Predatory Lending?? Lughead 2:49 PM, 02/23/04 (1) No, I don't see any egregious terms whatsoever.... Ward-CA- 11:09 PM, 02/23/04 (0) Re: Make a secured loan... Dave 11:32 AM, 02/23/04 (1) Foreclosure urgency and very soft terms... Ward-CA- 11:01 PM, 02/23/04 (0) Post a Followup: Name : E-Mail : Subject : Comments: : : : Seller had already filed a Chap.13, but had apparently messed it up since the house is scheduled to be auctioned next week. : : : We agreed on terms on 2/19/04(50/50 net equity split)and signed an EPA. Sale is scheduled for 2/26. : : : - How do I stop the sale? I have the $30k cash needed to reinstate, so that is no problem, but I'm worried how to protect myself. Does the BK court still need to be involved and how do I handle that part? : : : -Should I get the seller (only one person on title) to sign a deed today, before the 5 day right of cancellation is up? : : : -AND I want to use a THT to keep insurance and financing in place. : : : I'm confused as to what I should do, and time is definately of the essence. : : ================= : : Rick, : : Let’s tackle the trust first. All you need to put a Title Holding Trust (THT) in place is a grant deed that transfers title from the owner to the owner as trustee of their own trust. : : If the owner is June Brown then you’d have “June Brown” deed the property to “June Brown, Trustee of the Brown Trust, dated 2-23-04”. : : You’d copy the legal description off of a trust deed or current deed to the property. The Customer Service department of a local title company will fax to you, free of charge, a copy of the current deed to the property. Tell them you need all pages of the deed. Otherwise they just might fax you the face sheet only. : : The transfer tax designation on the new deed would read “-0- transfer to a revocable trust”. : : Make the return mail address the Brown Trust at the old address. : : Have June Brown sign the deed in front of a notary public and then take it to the county recorder’s office and record it. Get a certified copy of the recorded deed at that time. Also, at that time you will have to fill out a Preliminary Change of Ownership Report (PCOR). Though it has four parts, the only part you’ll need to fill in is Part I. Just check “No” for all questions except H-2. That one you should check “Yes”. : : Then put a giant X through Part II and Part III and Part IV and then have June Brown sign and date it. : : The balance of the trust declaration can follow in a couple of days or so when you have time pull it together. You won’t need to show it to anyone for a while...so next, focus on stopping the foreclosure auction. : : Have June call the foreclosing lender and ask how she can reinstate all the back payments plus penalties and costs before the auction. Have her get the precise payment amount and where she can pay it locally. Since time is so short would they allow her to pay it to the foreclosure auctioneer in Cashier’s Check form prior to the sale? : : The 5 Day cooling off period automatically ends at 8:00 AM on the scheduled day of the sale. At that point you and the seller are free to give each other anything of value. So June Brown, Trustee of the Brown Trust, dated 2-23-04 can sign a notarized trust deed and promissory note to you after 8:00 AM on 2-26-04 for the $30K you’re putting up for the reinstatement. : : Next, you need to get June Brown formally dismissed from bankruptcy so that the deed you get from her doesn’t need the approval of the bankruptcy trustee and judge (will make your title company happy). So have her file with the bankruptcy court a form, Debtor Request For Dismissal From Bankruptcy. : : When the emancipated June Brown gives you your deed you can pay her what you’ve promised and also reconvey the trust deed for the $30K. : : : : Hope this helps. : : Let me see if I understand the timing of payment and my exposure. : If I pay the $30K on Tuesday, but the cooling off period isn't over until Thursday, am I in violation of the law, since I can't give anything of value until Thursday? : And how do I guarantee they don't back out between Tuesday and Thursday, since I don't/can't get the deed and promisory note until Thursday? 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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