Posted by Jim IL on February 13, 2000 at 24:46:57:
First off, CONGRATS! you got a buyer! WAY TO GO!
Now, remember, I’m no expert, (as you know, since we have met. Õ¿Õ) but I’ll take a stab at this one.
When you bought the home, and took it “subject to”, didn’t the seller deed the property to a trust and then assign you beneficial interest?
If that is the case, the trust owns the house and you own the trust.
So, it is my understanding that there will only be ONE closing here.
You will goto the closing as the “beneficial interest” in the trust, and your trustee will also be there.
The Trustee will sell the home to the new buyer for the trust.
The funds will be paid to you as the “Beneficial interest”. I’m just not sure if the title company will pay the trustee, who then pays you, or if the funds go directly to you as beneficial interest?
In any event, in Illinois, the transfer tax is not to be paid on the first deal (your “Subject to”), because it is exempt. What the seller sold you was the trust, not the property.
Didn’t you see the stamp on the deed when you recorded it?
If you want to greatly reduce or avoid paying closing costs, why not just sell your beneficial interest in the trust to the new buyer for cash? (your equity)
He can then do as he wants with the loan afterwards.
And, as beneficial interest, he can then appoint a new trustee to the trust, or even have the home deeded to him instead of the trust.
Whatever works for him, since he now owns the trust.
Then again, I am a relative newbie, and these are just my thoughts.
Maybe one of the “Big guys/gals” here will come along and shoot my ideas and thoughts here full of holes?
Whatever you do, you are making a profit, and for that I say, “WAY TO GO!!”
P.S. Does this mean the beers in Atlanta are on you? Õ¿Õ