Foreclosure in Riverside>Question Details

llazski, Home Seller in Watertown, CT

Does having a living trust as the owner of your properties provide complications or benefits for a short sale?

Asked by llazski, Watertown, CT Mon Nov 5, 2012

Trust / short sale

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6
So Cal Homes 951-821-8211’s answer
Usually no. The Lender will seek the person(s) on the loan to deal with. Title will have to do with the title and escrow. As long as you are the trustee you should be in good shape.

Harold Sharpe - Broker
So Cal Homes
(951) 821-8211
harold@southerncaliforniashortsale.org
http://www.southerncaliforniashortsale.org
California Department of Real Estate Broker License # 01312992
0 votes Thank Flag Link Tue Nov 6, 2012
Thanks for the responses! Cindy has it right. We are the trustees, we own this rental property which we are trying to sell without success. The living trust was something we set up years ago. Only as we now consider the short sale option did it occur to me that this trust might complicate things, or perhaps be helpful. Trying to get educated.
0 votes Thank Flag Link Mon Nov 5, 2012
The trustee(s)/creator(s) of a living trust usually have the power to dispose of trust assets including doing a short sale. The sellers still have to qualify for the short sale as if there was no trust. An attorney's advice should be sought for every specific situation.
0 votes Thank Flag Link Mon Nov 5, 2012
I'm reading the question differently. You are the owner, you have the property in a living trust for yourself and you need to do a short sale. Is that correct?
0 votes Thank Flag Link Mon Nov 5, 2012
Hi there, it provides only slight complications, nothing to be concerned about though. In California , escrow handles all that.
If the borrowers are deceased, and the successor trustee is attempting to short sale the estate, the lender may not participate however.
Web Reference: Http://www.joryblake.com
0 votes Thank Flag Link Mon Nov 5, 2012
That is a question for a real estate attorney. My personal professional opinion would that it would not cause a major issue. But again, I'm not an attorney so would need to defer to the experts on real estate law.
0 votes Thank Flag Link Mon Nov 5, 2012
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