I have a deal in escrow (as buyer) that is set to just be financed with a hard-money lender and change title with a Grant Deed. I am running into title seasoning issues with a FHA-buyer on another property (as seller).
(Cont. re 1st deal): If I were to have the seller put the property in a simple trust (NARS) and acquire 100% beneficial interest (assuming that I could get my hard-money lender to still do the financing), this would avoid the title seasoning issue, right?
What about the issue with DOSC (“2. to a trust revocable by the transferor”)? – Does that mean the transferor (aka seller) could undo the deal somehow, or is this just to satisfy the Tax Assessor?
Also, when the property is eventually sold to a retail buyer (out of the trust), who will be paying the transfer tax? (I assume it’s either me or the buyer, depending on what we agree to, so it defaults to the buyer.)
We filed the cross complaint (took awhile as we “verified” each item.. attys know what I mean) and are actually looking to have them buy back the property from us (pay us to deed it back). The city has fenced off the property and liened the daylights out of it during this process (as we have been handcuffed against progressing with any corrections). This has cut into our marketing plan as far as timing.