Hey Guys & Gals,
Just wanted to get some feed back on REI Using land trusts :deal.
Any feed back would be great, ask any question, I use them myself. :beer
Just wanta know anyone who is doing the same and there insight and experiances :deal…
Thanks,
For what purpose? I use them for estate planning. I wouldn’t use them to confuse chain of title in RE transactions like the gurus promote.
Can’t I use it them aquire properties?
You can use them to take title. I just wouldn’t use them as a means to get around seasoning requirements.
Try using the search function. Land Trusts are a highly discussed topic.
In my experiance i have used Land Trust to:
*Claim ownership (like a sub-2)
*to purchase
*on shortsales
Now i was told on a thred here that on a short sale if you take the deed you can be open for the lender chasing you…
But if you have registered the title to your land trust the lender has No way of knowing who owns the trust, the owner of the trust is not registered.
Has anyone heard of this???
The trustee will turn over the beneficiaries/owners under court order.
so the court will turn the trustee into the owner or will make them reveal the owner…
just wondering how that will work… the trustee is only a name, and a mailing address it would be pretty hard to track someone down that way. dont you think?
Some states don’t allow an entity to be a trustee unless it is registered and that puts a person on the hook. The trust must have an address to accept legal service, which is not a PO box. Someone must sign and there will be a default judgment if no one contests the suit. You will lose the property.
It takes a little work, but it’s not that hard to track down. Don’t forget we are taking about real estate, which is easy to find and can be seized. There are also property records regarding the transfer.
Matshingdo,
One comment, one question:
-
People are much easier to track than most investors think if there is real money at stake; and
-
Why do you not want to be found? This is relevant, not be being a wise-guy.
HI JOHN,
Thanks for the response! :beer
ok this is the thing:
some people are saying that if you take the deed in a shortsale you are on the hook.
And my response is: if you put it in a land trust where you are the “trustee” you can control it and NOT be on the hook and doesnt that get the job done anyways???
then the responce was said the courts will turn over the trustee, and then seize the property.
if the property is seized No big deal, I doubt they willl put the trustee on the hook for any thing?
does anyone have a real life example of a court trial with this situation???
situation:
trust owns the house, you control the trust. :deal
when you get the short payoff you go to closing as if you where going to refi the property, if the bank chooses not to work with you they seiz the property :flush. (I have never heard of putting a trustee on the hook?) :bobble
What do you guys think??? :biggrin :rolleyes :biggrin
Why isn’t the trustee “on the hook?” If his action, inaction or decision caused an injury, he is responsible. If the trustee and beneficiary of the trust is the same person, there is no limited liability.
Interesting thread.
First off the trusts need to be legally strucutured and no legal advice intended.
John is right people can be found and trustee do need to be bonded and insured and have that good old fidicuiary responsibility to the trusts beneficiaries.
The trustee has no IRS reporting requirements and yes you can sue them but typically the beneficiary that direct him are responsible not the TRustee since in most cases they are acting on your behalf or direction.
Yes I agree a court order will bound a trustee however evasive to tell the truth but that takes quite a bit of undertaking to do and most people will evade by appointing a new trustee etc yet if there is wrongdoing one will get caught…
The nice thing is if you trust is setup under case precendent following Kenoe on Land TRusts a 1989 ILL ruling in most cases the trust will NOT be pierced only that one beneficiary interest so hopefully you layer your assets in different trusts.
If there is fraud involved that could a totally different thing.
My take on short sales I believe it is the timing of the conveyance from the settlor beneficiary to their designated trustee some lender will flag it some will not it is the lender game so just pre-flight to make sure you are good to go. The same would go for title or escrow companies.
Some short sale lender will raise those red flags especially with changing laws and statues…
As to title seasoning same idea in the short sale or flips I think there is no need for title seasoning when the settlor -seller is exercising his right unde federal law under Garn Gt Germain to place his property into a land trust for asset protection and estate planning purposes…
If you guys like hit me up on the benefits of using land trust and i will send it to you my email is coltrust07@gmail.com
I believe the protections far outweigh any perceived downside when done right and is legally reviewed…
We use Land trusts for every property that we acquire, regardless
of the method used to acquire.
When buying subject-to, many investors have the SELLER place the
deed into the land trust first then have them assign beneficial interest.
Not the way to go in my opinion. Go ahead and take title directly to your
name or company and then make the transfer to your land trust, a much
cleaner transaction…
why is it cleaner???
ps: I love the pope, and the islam black pope. :rolleyes