Trust or quit claim? - Posted by Rich Hyams

Posted by Marcos on September 17, 2003 at 16:53:42:

How long does the DOS take? You’ve got me. I’ve personally never seen it done. Not to say that it doesn’t happen. But, usually the bank talks about it, and yet never does anything.

Typically it would take someone notifying the bank that a transfer has taken place. As long as you pay the payments, it really isn’t too much of an issue.

The QCD CAN trigger the DOSC. Notice I say can, not does. There is no guarantee they will ever call the loan due.

Typically you would have at least a few months longer than your foreclosure cycle to rectify. For instance here in Florida, it takes four months. So, a DOSC wouldn’t be an issue as long as I knew I could sell it in six months or less.

Yes, you do have to worry about seasoning if you file a QCD. Now, you’re on title. Personally seasoning hasn’t been too much of an issue for me personally yet. But, we’ll see what happens in the future.

Good luck.


Trust or quit claim? - Posted by Rich Hyams

Posted by Rich Hyams on September 17, 2003 at 12:57:35:

I have a deal that the homeowner should be deciding on by tomorrow.

86k first, 24k second including arrears as of 8/1, comfortably under 114k total.

145k easy ARV

Repairs, almost none, really just a little paint.

Obviously, there is not enough to close in this, I am going to take it sub2, bring the first current and continue paying the mortgages till I sell it.

18 sales in the same subdivision in the last six months, 10 of them had MLS days on market of less than ten days. I don’t expect to hold it long.

I figure the QCD is fine. I am not planning to short sell anything, the extra trouble with the whole trust thing does not seem warranted unless a short sale is planned.

Am I thinking clearly?

I say Trust, the expense is justified and low - Posted by Jim FL

Posted by Jim FL on September 17, 2003 at 18:11:56:

Since you obviously plan to retail this house, I think a quit claim only is not a good idea.
Here is why;

If you get a quit claim, there is no warranty of title, which might be an issue when you resell.
Easier to get title insurance in the final transaction, when you get it the first time around.
Only a few bucks.
Contact some local attorney’s, and have them do the policy for you.
You can take title in a trust, just get some forms from a course, or author, and have the attny review them for use.
Should only be about $100-$200 bucks, and well worth it.

This way, when you go to sell, you know title was clear and marketable, and so does the title company, helping the last transaction close smoother.
Also, sometimes, lenders with title seasoning issues, will just overlook a title deeded into a trust, and then sold a few months later.
These look like estate planning moves.
Besides, you can always show them the trust where the original barrowers are the beneficial interest.
Have your attny close, and he will see the assignment of benenficial interest, and pay out accordingly.
The trustee, who could very well be you, gets the funds from closing, and discburses them accordingly.
Some lenders won’t go for this, but not a big issue, there are some out there who don’t have title seasoning requirements still.
Find them and refer buyers.

Good luck, sounds like a nice deal.

Jim FL

Re: Trust or quit claim? - Posted by Marcos

Posted by Marcos on September 17, 2003 at 13:21:04:

I think you’re just a tad confused, but pretty much right on target. Congrats on the deal BTW. My one recommendation would be to verify everything the Homeowner says. I would verify that these are the only liens and loans. Get an O&E report. If there is a First American Title near you, you might want to inquire about an express policy.

Typically you would only use a trust in this instance for a few reasons.

  1. Anonymity.
  2. To avoid the bank calling a DOS on you.
  3. To get around seasoning issues(sometimes).

As long as you’re not worried about any of these things, you should be ok.

Good luck, and congrats again.


Re: Trust or quit claim? - Posted by Rich Hyams

Posted by Rich Hyams on September 17, 2003 at 13:39:45:

  1. To avoid the bank calling a DOS on you.

How long does this take? Does filing the QCD trigger this?

I expect to have this one sold quickly. 145k is kind of low and with the speed things are moving in this neighborhood, a contract in a few weeks is probably likely.

I am thinking that is DOS does come up, it will only be on the first and I can get HM for that(if I have to some out of pocket for the second, I can do that also)

I don’t have to worry about seasoning because I am not really in the chain of title with a QCD, am I?

I have all the paper and a couple of examples of properly filled out Trust documents, if there is a good reason, I can go that route. I am just less comfortable because of my lack of experience.