How To Handle A Short Sale On A Property That Is Owned By A Trust

By
Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

tutas towne realty


Hi Folks. I’ve ran across agents, several times this week, not sure how to handle a Short Sale when the property is owned by a trust. So I thought I’d take a minute to explain how this works. Actually I can do it in about 1 second........

 

…......exactly the same as you would handle any other Short Sale!!

 

Here’s why.

 

Short Sales are done for Borrowers. Even though the property is owned by a Trust the note was more than likely signed by an individual. The individual is the one you are doing the Short Sale for. He is the Borrower.

 

The ownership of the property was probably placed in a Trust after it was purchased. Usually this is done for estate and/or tax purposes.

 

So.....your listing agreement and the purchase contract would be in the name of the owner of record. This could be a Trust, LLC, INC or a person(s). You would need a copy of the Declaration page for the Trust, LLC or INC to see who is authorized to sign and act on the entity’s behalf. This is the person who signs the agreements.



The Borrower(s) is the person that took out the loan and signed the Note. This could be the same person that is authorized by the Trust or it could be someone else. Whoever it is, this is the person who must go through the Short Sale process. Simple.

Any questions?

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 Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Windermere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

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Rainmaker
1,186,654
Curtis Van Carter
Better Homes & Gardens Wine Country Group - Yountville, CA
Your Napa Valley Broker Extraordinaire

Bryant

When you think about it for a minute, it makes perfect sense but your title made me think about it. Good simple post with a good tip. cheers cvc

Feb 05, 2012 04:32 AM #1
Rainer
90,609
Maya Swamy
Funds Available - Long Beach, CA
Ph.D. Long Beach, CA - fundsavailable.com

Very simple when you put it that way.

Feb 05, 2012 06:51 AM #2
Rainmaker
592,907
William J. Archambault, Jr.
The Real Estate Investment Institute - Houston, TX

Absolutly excellent advice, Bryant!

So many agents look for problems that simply don't exist.

It's also a great time to point out that most homes should be held in trust and most investment properties in an LLC. There is little if any thing you can't do with the property in a well planed trust or LLC, except lose it to an unrelated tort.

Check with a good real estate and/or tax attorney the states vary.

Bill

Feb 05, 2012 07:09 AM #3
Rainmaker
1,607,549
Charles Stallions Real Estate Services
Charles Stallions Real Estate Services Inc - Gulf Breeze, FL
Buyers Agent 800-309-3414 Pace and Gulf Breeze,Fl.

That is for sure no matter the situation it would be the OOR.

Feb 05, 2012 07:20 AM #4
Rainer
218,050
Kimberley Kelly, SFR, HAFA, GREEN
HK Lane, Christie's International Affiliate, 760-285-3578 - La Quinta, CA
I do Real Estate like I played polo-to WIN!

Good advice Broker Bryant..thanks!

Feb 06, 2012 11:42 AM #5
Ambassador
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

BB

The only difference I know of here is that the Trust may be exempt from a few of the statutory disclosures depending on the circumstances if the trustee is not someone who lived in the home.

Jeff

Feb 06, 2012 01:41 PM #6
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Melissa Zavala
Broadpoint Properties - Escondido, CA
Broker, Escondido Real Estate, San Diego County

Changng the subject (but your post made me think of this)... I was contacted by a buyer that wanted to buy a short sale x, bring the seller's mortgage current and pay the mortgage for two years as part of a land contract. Then, he said he would refinance within the two year period. Seller was not interested and neither was I, but it got me to thinking...

Feb 06, 2012 02:23 PM #7
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Jason Sardi
Auto & Home & Life Insurance throughout North Carolina - Charlotte, NC
Your Agent for Life

Bryant - Sounds easy enough.  Trusts can often throw a bit of a wrinkle in things, good to hear this is one less potential problem in that type of transaction.  I learned something new today!

Feb 07, 2012 10:00 AM #8
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Rainmaker
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Bryant Tutas

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