All Forum Posts by: Herm M.

??? Did you mean "C's financing?"

"The trust documents sets out who the trustee is not usually the buyer, but someone you trust to act as trustee and who the beneficiary of the trust is which will be the seller, Mr. Smith."

In this case, the buyer IS the trustee.

Here's the scenario:

In October, Buyer B writes an offer to Seller A.

In February, Buyer B writes a new offer to Seller A after the bank's counteroffer.

Right now, Buyer B is waiting for an approval letter from the bank.

Title company is telling me that to use a land trust which assigns Buyer B as the trustee or the 123 Street Family Trust.

That way, lender C can start working on the B-C side because they see B on title as trustee.

Beneficial interest currently remains with seller A, but will be transferred to XXX Corporation at some point.

So how is using a land trust going to affect the A-B transaction?

Is this what you're saying:

[/b]Once the land trust records, B will be the trustee. So how can B be purchasing the property from B?[b]

Is that what the problem is?

I don't know if I'm just dumb, or if this is actually very confusing.

BTW, the title company is not charging for the land trust.

Also, the title company rep who drafted the land trust...she is VERY CONFIDENT that she knows what she's doing. Her words:

"These are the only types of transactions that I do."

I trust what she's saying and am sure that she knows what she's doing. However, I read things on BP that make me thing more carefully about my stance.

W-T-F should I do?

I'm still confused.

I originally submitted buyer B's offer at 250k in October. Recently, I submitted an offer under the same name for 285k.

I'm expecting that approval letter any day now.

How does the land trust affect any of this? Whether or not it was required prior to, or after approval...what is the affect as long as the buyer is still the same?


I HAVE NO YET RECEIVED AN APPROVAL LETTER. ALSO, I HAVE NOT YET RECORDED THE LAND TRUST.

Scott, the buyer on the A-B side remains the same.

Only the C buyer may change.

Also:

"1. If your approval letter names a specific buyer, then using a land trust now will mean you will need to the A lender to accept the Land Trust and amend the approval letter."

I didn't quite understand that...

Can you explain please?

Scott, thanks for all the information.

Now here's another question:

The title company has told me that, using the land trust, the BENEFICIARY should be a corporation.

If I don't use the Land Trust, what needs to be done in order for the beneficiary to be a corporation? Is it simply drafting and recording a document?

I'd much rather have this money go to a corporate account for tax purposes.

With Chase, I had a BPO done around the middle of January.

The deal is scheduled to closed about April 15.

So I'd say about 3 months with Chase.

The short sale lender wants to close by April 15th.

Let's say I use bridge funding, that means the C buyer would need to close around April 18th.

My title company has told me that a land trust is needed. Reason:

So the B buyer's name is on title and C's lender won't have an issue seeing a different name on title (therefore, they can start working on the financing immediately).

Is this correct? I've heard some conflicting information as well. I've heard that C's lender won't be interested in working on a deal like this if there's a land trust.

So that's option A...the land trust.

What's my other option? If I don't use a land trust, party A will be on title until April 15th.

If that's the case, how is it possible for C to close on April 18th?

Will C's lender be willing to work on the loan if they see a "contingent upon B obtaining said property" contingency in C's purchase contract?

Can we show C's lender the A-B contract to show that B is in the process of obtaining the property? And if we do that, isn't there a risk that C's lender sees that B is purchasing for X amount of dollars, and then C's lender will refuse to give C a loan for the purchase price of Y dollars because of the 50k difference?

What are my options? I keep hearing different things, and don't want to screw this up.