Comments on: The Land Trust debate – is it dead and did it ever help with seasoning http://mhobach.com/editorial-comments/the-land-trust-debate-is-it-dead-and-did-it-ever-help-with-seasoning/ "Information is not knowledge until we apply it and use it in our lives" Tue, 17 Aug 2010 01:37:10 +0000 http://wordpress.org/?v=2.9 hourly 1 By: Kathleen A. Scanlon http://mhobach.com/editorial-comments/the-land-trust-debate-is-it-dead-and-did-it-ever-help-with-seasoning/comment-page-1/#comment-10825 Kathleen A. Scanlon Tue, 29 Sep 2009 03:02:13 +0000 http://mhobach.com/2008/04/23/the-land-trust-debate-is-it-dead-and-did-it-ever-help-with-seasoning/#comment-10825 I just want to clear up a few misconceptions here: 1. Active v. Passive Trusts: An Active Trust is a Trust in which the Trustee has active powers and duties. If the trustee has no active powers/duties, it is a Passive Trust and in many jurisdictions, the Trust would fail. It has absolutely nothing to do with tax id numbers. 2. Seasoning: Depending on how the Trust is created and when the Settlor purchased the subject premises, transferring title to a trustee with (1) no consideration and (2) settlor retaining 100% of the beneficial interest in said trust would not reset the clock for seasoning purposes. See my legal analysis of FHA's seasoning rules: http://realestatelaw.typepad.com/where_is_blackacre_anyway/2009/04/seasoning-.html There are many ways to move properties and make a living - if you are going to work with trusts, my suggestion is to work with a lawyer who is well versed in that area - this is definitely not an area for a layperson. I just want to clear up a few misconceptions here:

1. Active v. Passive Trusts: An Active Trust is a Trust in which the Trustee has active powers and duties. If the trustee has no active powers/duties, it is a Passive Trust and in many jurisdictions, the Trust would fail. It has absolutely nothing to do with tax id numbers.

2. Seasoning: Depending on how the Trust is created and when the Settlor purchased the subject premises, transferring title to a trustee with (1) no consideration and (2) settlor retaining 100% of the beneficial interest in said trust would not reset the clock for seasoning purposes. See my legal analysis of FHA’s seasoning rules: http://realestatelaw.typepad.com/where_is_blackacre_anyway/2009/04/seasoning-.html

There are many ways to move properties and make a living – if you are going to work with trusts, my suggestion is to work with a lawyer who is well versed in that area – this is definitely not an area for a layperson.

]]> By: flipping short sales without title seasoning problems http://mhobach.com/editorial-comments/the-land-trust-debate-is-it-dead-and-did-it-ever-help-with-seasoning/comment-page-1/#comment-26 flipping short sales without title seasoning problems Sat, 24 May 2008 00:19:28 +0000 http://mhobach.com/2008/04/23/the-land-trust-debate-is-it-dead-and-did-it-ever-help-with-seasoning/#comment-26 [...] with scary results?? ... property to the rightful owner without any problem whatsoever. ...http://mhobach.com/2008/04/23/the-land-trust-debate-is-it-dead-and-did-it-ever-help-with-seasoning/Amazon.com: FLIP: How to Find, Fix, and Sell Houses for Profit: Rick ...... it is without question [...] [...] with scary results?? … property to the rightful owner without any problem whatsoever. …http://mhobach.com/2008/04/23/the-land-trust-debate-is-it-dead-and-did-it-ever-help-with-seasoning/Amazon.com: FLIP: How to Find, Fix, and Sell Houses for Profit: Rick …… it is without question [...]

]]> By: CarlS http://mhobach.com/editorial-comments/the-land-trust-debate-is-it-dead-and-did-it-ever-help-with-seasoning/comment-page-1/#comment-21 CarlS Wed, 23 Apr 2008 17:25:43 +0000 http://mhobach.com/2008/04/23/the-land-trust-debate-is-it-dead-and-did-it-ever-help-with-seasoning/#comment-21 Michael, well put! When I 1st started in 2004 I put together a land trust (hybrid), Never once did I have a client that could understand what the trust was for, I couldn’t explain it and nether could their attorney’s and somehow I was able to fumble and get deals done, however it was very expensive, cumbersome and several extra steps were required to get my paycheck. At some point I wondered if there was an easier way to build the docs and explain the process to the client. That was about the time that I got your 1st email, your material helped me break the code. When I could better educate and explain the process to a client, they want to sign up and get the party started 100% of the time! Thanks again for all your support and your excellent material. Anyone considering working with short sales can save themselves a lot of time and money and just get your “Big Bundle”, I have spent thousand of dollars for some very nice 3-ring binders, tape and CD’s on my office shelves, however there is nothing that compares to what you have put together at a fraction of the price, keep up the great work. Happy hunting, Carl Michael, well put! When I 1st started in 2004 I put together a land trust (hybrid), Never once did I have a client that could understand what the trust was for, I couldn’t explain it and nether could their attorney’s and somehow I was able to fumble and get deals done, however it was very expensive, cumbersome and several extra steps were required to get my paycheck. At some point I wondered if there was an easier way to build the docs and explain the process to the client. That was about the time that I got your 1st email, your material helped me break the code. When I could better educate and explain the process to a client, they want to sign up and get the party started 100% of the time! Thanks again for all your support and your excellent material. Anyone considering working with short sales can save themselves a lot of time and money and just get your “Big Bundle”, I have spent thousand of dollars for some very nice 3-ring binders, tape and CD’s on my office shelves, however there is nothing that compares to what you have put together at a fraction of the price, keep up the great work.
Happy hunting,
Carl

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