New to short sales…
When the lender asks for a purchase contract in the short sale package, and im planning on wholesaling to an end buyer, how does the purchase contract get set up? (I would be doing a double close and use a land trust because my end buyer is getting a loan and I don’t want to break title and run into a seller seasoning issue).
Is the trust the purchaser on the purch contract or is my end buyer?
your contract should simply say,
Parties YOUR COMPANY, as trustee (buyer) and Joe adn JAne Doe( Seller)which terms may be singular or plural …blah bla bla
when you sign off at closing you should sign your name as Agent for YOUR COMPANY, As trustee.
that will do it.
It doesn’t seem that answers my question unless im just misunderstanding. How does my end buyer fit into that contract setup?
first contract Peter Seller to YOUR COMPANY as Trustee
Second contract: YOUR COMPANY as Trustee to END BUYER
double closing, 2 HUDs and 2 P&S
Do you really need to use a land trust here? The only reason I can think of doing so would be for tax purposes, but I’m pretty sure a land trust is a flow through entity and therefore it’d probably just be easier (ie, less confusing for your lender who is requesting your purchase contract – and perhaps you, too) to just use your personal name to put on your first contract. I suppose there’d be some value in keeping your name off the records, but since it’s a double close… I don’t know… just typing out loud.
putting your own name will break chain of title.
if it is in th etrust youi own the property and title still shows ok.
It also prevents liens. I put one in a trust last march and on th eApril a 2.5 million IRS lien attached. the title agency removed it as it could not attach to trust.