Over the years we have made a brief sale in the field of land trust. We stopped working on a short sales process about seven years ago just because it was faster and more cost effective for professional negotiators to do all the work. Some investors disagree because they believe that any negotiator does not work “enough” for their best interests; However, it depends on the ability of the negotiator.
Recently, some students continue to say that Realtors® and lenders will not accept land trust as buyers. Because some complain so much, they almost make me believe this. Agent of this list tells the Student to make a purchase with their respective name or the name of their entity. All Students are required to make appropriate jasa topografi changes and there is usually no problem with the deal.
The problem with land trust as a buyer is that they allow the beneficiaries of the land trust to be moved or replaced at any time before or after the closure. This transfer of ownership remains anonymous in public records so that the seller or lender has no idea that ownership of trust has been altered.
WARNING – if you close the property with confidence of the land and then transfer the favorable interest after closing, you are legally responsible for paying transfers and / or documentaries to your county. If you transfer a favorable interest before the initial closing, you will pay the transfer tax at the time of closing and are not required to do it again until you transfer a title or a beneficial interest in the future.
When and if you change the trustee, you should only pay the applicable recording fee. Do not try to use the land trust to take advantage of County to save a few dollars in how to record and transfer costs because they think they will not catch you because maybe and fines can be expensive.
A few days ago a new Student, who had a six-figure income last year made only a short sale, called me and asked me questions about the offer he made. As we talked, I raised the problem from HOA Estoppel Letter. With the Household Owners Association (HOA), they often want buyers approved and for investors meaning to approve buyers “B” and buyers “C” – a double whammy. The issue of owner approval by HOA has become a killer deal for many investors who do not know the solution to the problem. Some HOAs only meet every three months so the time between Letter Estoppel approval can be very extreme.
In short, if you use a land trust as a HOA property buyer, HOA Applications may be submitted to your trustee – your final buyer. There’s nothing interesting about this concept unless you do not know it, but we’ve been doing it for years.
Of great interest is that a Student who has a 6-figure income in a short sale last year made a 100% offer in confidence in the land and almost all of it was agreed with the trust of the land as a buyer. Only Wells Fargo and Bank of America are reluctant to let the land be trusted as buyers but the problem is solved by letting them see the confidence of the land itself. In some dispersed cases, the closing agent will ask the land trust to see that the trustee has the legal power to purchase the property and it is okay.
The feedback I get from Students is the agent / seller / lender will not accept the confidence of the land while I suspect most if not 98% of all offers filed with the land trust is okay with the seller. We never had REO’s offer in the land trust denied. At best Mitigation Loss Manager or Asset Manager may ask to see a land trust document and it’s okay. Our biggest hurdle is the list of agents who believe that the land trust is illegal and, with their own admission, they then do not submit the offer.