I’ve read where folks give the seller a hud 1 statement after getting the home sub2 so the seller can qualify for financing for another home. How do you give the seller a closing statement when you just went through this intricate process to make it look as if the home was put in a trust & not sold? and/or better yet…
How does the seller explain that they sold the home to me[ the person on the Hud-1,(i think)] when they have made it appear that they just put it in a trust?
I could never get that?
Thanks in advance to those who can clear this up 4 me…
verbatim,
Don’t complicate things more than necessary, :mrgreen:
The trust is simply for privacy purposes, including shielding the transfer from the lender.
It’s still a sale, although technically the law considers the sale of a beneficial interest in a trust as personal property, so I’m told. I’ve never had an issue getting HUD-1’s done. I do them myself now and have for a while, but I had title companies do them for me during the first couple of years in exchange for buying a policy.
The seller doesn’t have to “explain” anything. They sold their home as evidenced by the HUD-1. Grab a copy and check out lines 203 and 503. The interesting part is that the vast majority of folks who deal in real estate don’t even know those lines are there. :deal
Once again Tim steps up to bat! :multiflash