nyreattorney

Topic caught my eye lol!

Yes I understand perfectly (remember my caveat that I was responding at 3:30am so I was a little foggy).

The RB has a cash equity stake in the trust and therefore that satisfies the lender’s requirement of the buyer having contributed the requisite amount of their own funds to the transaction.

I think it is fairly easy to explain to the right Lender.

Interesting and I have been mulling this for a while….

The problem with transactions are cash-poor buyers. If the Trust was able to “gift equity” or allocate equity to the purchaser because that purchaser became a beneficiary of the Trust that would alleviate the “cash-poor” issue.

Now gentlemen, I am brainstorming on this so bear with…[Read more]

I have 2 comments re: hiring lawyers..

1. $150 a hour? Who works that cheap lol!
2. Real Estate attorneys charge a flat fee (or that is the custom here)

I agree about the full disclosure and there not being a fraud if the disclosure is made. However, notice the FBI now mentions land trusts. They are on the radar and I personally like to fly…[Read more]

Funding in a non-attorney state would seem to be difficult under the circumstances. In the current real estate industry, there is a witch hunt going on folks, they don’t need evidence, they need a hunch. Then, they ruin your life, your business etc. My suggestion is get to know some good real estate attorneys in your area and have everyone…[Read more]

@Dave Salcido wrote:

To further clarify my position. There is, as of yet, no precedent, no case law that I know of that has come to light with respect to FHA seasoning when a title is transferred from the property acquirer to his/her trustee. I believe Kathleen in her most recent post is probably the most informed of anyone (maybe in the entire…

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@Scott_L._Moyes wrote:

@jerrym wrote:

When a RB refinances the loan, does the trust end at that point? Or can the trust continue with the RB responsible for the loan?

The trustee is directed, of course, to sell the home to the RB. But why does the trust have to end? If it does?

Let’s correct a few things first. An RB DOES NOT REFINANCE. In…

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I only wish my profession and other members of the real estate industry, i.e. title companies, saw it the same way.

I, unfortunately, seem to be the victim of vicious rumors, spread by local NY attorneys and title companies (because I apparently shut down their illegal operations of making up fake HUD-1s, doctoring up dates in title binders for a…[Read more]

Thanks Gary and as for Bill, I wouldn’t have him be any other way lol!

@bill_gatten wrote:

Kathleen, you are not only brilliant, a fine lawyer and a looker…you’re my next wife (assuming my present one will relinquish title to me and give me back all the jewelry).

Thank you so much for that input. It answers the questions and enlightens us all as to the reality of what’s is going on.

Our thinking re. our proposed…

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This is the way we have successfully structured this transaction.

A creates land trust retaining 100% BO of trust & deeds property to Trustee. No seasoning issue created as Date of Acquisition remains the date A purchased the property (see my legal analysis of the FHA Seasoning Requirement)

Contract of Sale between A & B for home and/or…[Read more]

I posted my legal analysis of the FHA seasoning underwriting requirement which many, if not most, bank underwriters apply incorrectly and you can read it on my blog link below:

http://realestatelaw.typepad.com/where_is_blackacre_anyway/2009/04/seasoning-.html

This should answer this question easily and finally for you all.

I saw the posting of the FHA and Fannie Mae guidelines regarding trusts and I think you are confusing seasoning with these institution’s requirements for Lending to a borrower who is going to take title in the trust.

THERE IS NO SEASONING ISSUE WHERE A HOMEOWNER TRANSFERS TITLE TO A LAND TRUST AND RETAINS 100% BENEFICIAL OWNERSHIP OF THAT TRUST. …[Read more]

My two cents – be careful.

I belong to the NYS Bar Association Real Property List Serv. and I came across an interestng post by a fellow attorney concerning the Unauthorized Practice of Law.

It seems that a CA attorney prepared a CA trust and deeded a NY property to the trustee of that trust with a NY deed which was filed in the approriate…[Read more]

You can’t say “regardless of the state”! Doing so puts you in jeopardy. The treatment of land trusts does vary from jurisdiction to jurisdiction and there is not going to be one definitive answer across the board for the entire country.

1. Where is the property? I take it that its the metropolitan area – NYC or other? NYC can be a nightmare while Long Island has summary eviction.

2. I am NOT a landlord/tenant attorney nor do I want to be one. However, I have some good people I refer out to and I can hook you up. The land trust presents a twist as the beneficiary has a…[Read more]

Thats the beauty of real estate investment – there are so many different ways to do it.

Some like the trust transaction with an RB or some prefer the flips whether short sale or not.

For the short salers or flippers together with the land trust, the 203K streamline can be a godsend. In my area, I have not seen much of the subject to with RB…[Read more]

As long as the contemplated mortgagor is going to be the owner-occupant the answer is yes you can combine the two – why not?

I think that is what is key because some of these homeowners have damaged their homes or need upgrades – the 203K streamline works perfectly.

Thanks Gary for the translation lol!

Back in the 90s, I worked with a number of speculators that used to buy homes dirt cheap, rehab them and sell them to buyers. They didn’t go through brokers – they did the bird dogging themselves and would post ads for prospective purchasers etc with say, a lead-in house. Now of course that house would be…[Read more]

This Lender is licensed in 43 states (including CA) and has a full FHA eagle. I also have a relationship with a title company that does work in a multitude of states.

FHA203K streamline is going to be the best product.