Land Trusts and Foreclosure Avoidance - Posted by John

Posted by blogger on February 27, 2008 at 10:39:42:

Looks like lawsuit or threat of same against that defaulting new trust beneficiaryis going to be required.

So you’ll need to consult and probably hire a local lawyer to go after him to force his compliance with the agreement or order his eviction from the trust.

Land Trusts and Foreclosure Avoidance - Posted by John

Posted by John on February 26, 2008 at 18:20:09:

If I have a home titled in the name of a land trust and sell it to a buyer on an agreement for beneficial interest of a land trust and the buyer defaults, then how do I go about regaining possession of the home. Eviction? Foreclosure?

Thank you for your various insights.


Re: Land Trusts and Foreclosure Avoidance - Posted by colvegas

Posted by colvegas on March 14, 2008 at 21:34:19:

No legal advice intended at all just my understanding.
First of all your designated trustee owns the property so it is titled in the trustee’s name not the land trust…?? you control in being a beneficiary via your your beneficial interest so the trustee whom is directed by you by way of a letter of direction sells the property to your buyer.
This is normally the case with Illinios title holding land trusts you may have a different type trust entity…??? as Bill say lots of legal questions but that is generally how they work.
If you sell the property so the trust is terminated and the buyer buys it from the trustee…
If you keep the trust in place and the tenant is assigned beneficial interest which it is typically done under a triple net lease so the tenant ( co-beneficiary) is responsible for all payments and upkeep on the property and since being a beneficiary is subject to simple eviction depending how your agreement is setup…so a judicial foreclsoure is not required and they can NOT make an equitable claim on the property and that is how we do this transaction.
So if done from my understanding it would be EVICTION.
I do not know however the trust you have this is how we do our trusts…
My email is if I can help further…

Re: Land Trusts and Foreclosure Avoidance - Posted by Bill H

Posted by Bill H on February 27, 2008 at 16:45:59:

If you sold it…did you owner finance? What is your interest in the property?

Did you buy it sub-2? Whole lot of legal questions here that you will not get legal advice on this board for.