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big al
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short sale/foreclosure & land trust protection
Thursday, February 21 2008 04:14 PM
first off, i live in california. i used to live in my condo, but bought a new home. i tried to sell my condo for 9 months prior to moving into the new home, with no success, and have since moved into the new home. my condo is now my "investment property" by default, but i cannot keep up the mortgage payments (even while having a renter for past 4 months who is now moving out) i am attempting a short sale, but no guarantees there and the situation could progress to foreclosure or bankruptcy. my main concern is keeping my new home unaffected by all this. i was advised by attorney to form a land trust and put my new home in, as well as 401k, bank accounts, etc. in my state of california, will i really be protected? again, my main concern is keeping my new home. also, my new home has no equity as prices have actually gone down. on top of all this, the attorney wants to charge me $2250 to execute land trust. please help.
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Randy Hughes
SFH Master Advisor
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Re:short sale/foreclosure & land trust protection
Thursday, February 21 2008 08:24 PM
Big Al,
See my comments in BOLD below.
Randy
first off, i live in california. i used to live in my condo, but bought a new home. i tried to sell my condo for 9 months prior to moving into the new home, with no success, and have since moved into the new home. my condo is now my "investment property" by default, but i cannot keep up the mortgage payments (even while having a renter for past 4 months who is now moving out) i am attempting a short sale, but no guarantees there and the situation could progress to foreclosure or bankruptcy. my main concern is keeping my new home unaffected by all this. i was advised by attorney to form a land trust and put my new home in, as well as 401k, bank accounts, etc. in my state of california, will i really be protected? again, my main concern is keeping my new home. also, my new home has no equity as prices have actually gone down. on top of all this, the attorney wants to charge me $2250 to execute land trust. please help.
YOU NEED TO TALK TO A DIFFERENT ATTORNEY. THIS GUY IS TRYING TO SWINDLE YOU! FIRST, A LAND TRUST WILL NOT PROTECT YOUR HOUSE FROM ULTIMATE FORECLOSURE. IT WILL PROTECT THE HOUSE FROM ANY JUDGMENTS AGAINST YOU, BUT THE LENDER CAN STILL FORECLOSE IF YOU DO NOT KEEP UP YOUR PAYMENTS. A LAND TRUST WILL ALSO SLOW DOWN YOUR CREDITORS BUT NOT STOP THEM. ULTIMATELY THEY COULD GET THE EQUITY IN YOUR HOUSE (AFTER YOUR STATE HOMESTEAD EXEMPTION AMOUNT). HOWEVER, IT SOUNDS LIKE YOU HAVE NO EQUITY. THEREFORE, YOUR BEST BET IS NEGOTIATING WITH YOUR LENDER.
IT REALLY CONCERNS ME THAT YOUR ATTORNEY IS TRYING TO CHARGE YOU AN OUTRAGEOUS AMOUNT FOR YOUR LAND TRUST. YOU CAN BUY OUR LAND TRUST COURSE (THAT COMES WITH FORMS) FOR 80% LESS AND THEN CREATE YOUR OWN LAND TRUSTS FROM NOW ON FOR NO COST OTHER THAN RECORDING THE DEED.
PLEASE GO TO THE FOLLOWING LINK TO READ UP ON THE BENEFITS OF A LAND TRUST:
http://www.realestateforprofit.com/blog/default.aspx
PLEASE BE CAREFUL!
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Randy Hughes
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big al
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Re:Re:short sale/foreclosure & land trust protection
Friday, February 22 2008 11:33 AM
randy,
thanks for your reply. again, i don't want to hold on to the condo. if it short sells, or worst case scenario foreclosure/bankruptcy, i will live with consequences. i want to ensure that a land trust will protect my current home and 401k, bank accounts, etc. please advise.
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Randy Hughes
SFH Master Advisor
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Re:Re:Re:short sale/foreclosure & land trust protection
Friday, February 22 2008 12:12 PM
Al,
One thing i forgot to mention in my last posting is that a land trust CANNOT hold title to your bank accounts, 401K, etc. A land trust can only hold a real estate interest (title, option to buy, land contract, air rights, etc.). You would need to form a personal property trust (one is provided in our Advanced home study course) to hold these items (i would suggest a separate trust for each item).
Again, putting your house in a land trust is better than NOT. But, it will not give you ultimate protection.
Let me know if i can be of help.
Randy Hughes
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dp
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Re:Re:Re:Re:short sale/foreclosure & land trust protection
Thursday, April 10 2008 09:51 PM
can I be a beneficiary and still be Trustee of the Trust?
Here is the scenario. My mom and I have a condo in Miami that is about to go into foreclosure. I'm on title with her but the mortgage is under her name only. I wanted to deed the property into a land trust to prevent any more 3rd party liens(HOA just recorded a lien against the property) and to do a shortsale. I'm aware the I can make no profit on this deal, I'm on title of the property. On the Deed to Trustee the Grantor is my mom and myself and the Grantee is the land trust by "me" as Trustee. My question is on the Land Trust since I'm on Title do I have to name myself beneficiary also and if so can I be a beneficiary and still be Trustee of the Trust?
Second question-My moms primary property is in Connecticut that has some equity in it, if this condo in Miami goes to foreclosure can the lender come after the equity in her primary property that is in Connecticut? If so would creating a seperate Land Trust and deeding that property into it protect her?
Thank you in advance
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teddy
designer/investor
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Re:Re:Re:Re:Re:short sale/foreclosure & land trust protection
Thursday, April 24 2008 05:38 AM
I have the same question as DP, but did not see an answer appear on the screen. I have pending foreclosures on investment properties here in Florida. I own a home in North Carolina where I will be moving for my permanent residence soon. If I put the NC property in a Florida Land Trust with Florida resident as Trustee will that protect my NC property from deficiency judgements? Teddy
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Randy Hughes
SFH Master Advisor
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Re:Re:Re:Re:Re:Re:short sale/foreclosure & land trust protection
Friday, April 25 2008 08:40 PM
Teddy, and DP,
The short answer is NO. Land Trusts are designed more for privacy than asset protection. Putting your property into a land trust will protect the attachment of liens against you from attaching to the title of the property. However, it will not prevent your creditors from eventually getting to the equity in your land trusts. It WILL slow them down tho...this buys you time to try to negotiate a settlement. At least you get to stay in the game instead of a slam dunk against you and your property.
Our Advanced Land Trust home study course teaches you how to put "teeth" into your Trust Agreements and make them more of an asset protection tool. But, i would suggest you study the Basic course first so you have a solid foundation of knowledge before moving on to the Advanced course.
Randy Hughes
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Randy Hughes
SFH Master Advisor
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Re:Re:Re:Re:Re:short sale/foreclosure & land trust protection
Friday, April 25 2008 08:41 PM
Teddy, and DP,
The short answer is NO. Land Trusts are designed more for privacy than asset protection. Putting your property into a land trust will protect the attachment of liens against you from attaching to the title of the property. However, it will not prevent your creditors from eventually getting to the equity in your land trusts. It WILL slow them down tho...this buys you time to try to negotiate a settlement. At least you get to stay in the game instead of a slam dunk against you and your property.
Our Advanced Land Trust home study course teaches you how to put "teeth" into your Trust Agreements and make them more of an asset protection tool. But, i would suggest you study the Basic course first so you have a solid foundation of knowledge before moving on to the Advanced course.
Randy Hughes
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