Re: Stacey_Az - Posted by Stacy (AZ)
Posted by Stacy (AZ) on January 22, 2001 at 13:07:42:
Just to be clear…my offer has not been accepted on the deal I mentioned below. No word yet.
But, to answer your question, I’ll have the seller deed it to a trust using my trustee, and listing the seller as beneficiary, and record it. Then, I’ll follow-up with an assignment of beneficial interest to me.
Now, I’ll be at a decision point. As I work the sell side of the deal, if I think I’ll be holding the property for more than a few months, I’ll probably record the assignment. If it looks like I’ll be holding for a short time, I’ll probably not record the assignment. I like to have a separate assignment to keep my options open as I try to sell. Of course, as soon as it’s recorded, I know the lender can find out I’m the beneficiary. So, I know I have an added risk of the loan being called due. But I think the odds are against it. If it happens, I’ll refinance.
AZ statutes make it more risky to not record the assignment, as you know. The sale can be nullified by the seller if the assignment is not recorded. But here’s the deal. What are the odds that a seller would even know he has this option? I’d be surprised if you could even find an Arizona attorney who knows this is possible. But, the risk is still there. You have to decide for yourself if the risk of the lender calling the loan due, or the seller nullifying the sale is more of a concern for you.
The only reasons I even bother with using land trusts here in AZ are 1) it’s simple and free, and 2) it “may” help cloak the sale in the public records, just by making the chain of title more complex. I don’t have a recommendation, though. AZ law makes it difficult.