What does "trustee" mean in sale of house (disclosure, foreclosure)

[vpcats]

I just got back from vacation and found out my neighbor is selling, or something. I had a card from one of these "I buy houses" places so I called and the person said she was the trustee for the property.

It's not a short sale, it's not foreclosure, it's not bank owned - "give me an offer".

I might be interested. It's the house right next to mine. It's bigger than mine and it's very well maintained. I haven't seen it inside yet but could think of it as investment property, or even for myself and rent mine out.

What kinds of questions should I be asking? What kind of info should I be looking for? Is there a special place to find out the real story about the property/sale? Do I need to handle this any differently from any normal sale? Of course I'd like to get it for bottom line price.

Thanks for all answers and advice!!!

[vpcats]

Oh I feel so neglected.

Noone has any ideas for me?

[palmcoasting]

Ok, ok, quit the whinning!

It means that, if it's true, the owner has put the house into a trust with the person you spoke with being the trustee. While there may be different ways to do it, the one I know about is that the owner of the property puts the house into a trust of their own name and then assigns the trust to someone else. In essence the trust owns the property (it's deeded to them) and the trustee is free to do what they want with the property. With the type of company you are talking about, the corporation has probably contracted to purchase the property at a certain dollar amount and is trying to resell it to make a profit.
It could be a lot simpler than that, but the gist of it is that the trustee is able to do what is necessary with the property. Kind of like a property specific power of attorney except the deed has been turned over.
Sometimes the corporation pays the property owner money up front to move, sometimes not.
If yours is a disclosure state, you can go online to the county records (if they have them online) or to the court house and look at the paperwork that was filed. If it's been filed. Sometimes it's not until the 'trustee' needs it to be.

Clear as mud yet? Here, read this: Trust (property - Wikipedia, the free encyclopedia)

[vpcats]

Thank you. Thank you.

Yes, I get the impression that it's something like you're describing, one way or the other.

Why would the owner turn over the property though? They can't afford it? I know this woman has had this house for 30 years. It was paid up but she did a refinance about 2 or 3 years ago and took out $100K. The house is very nice and updated to the hilt.

I just don't know what "tricks" she or the trustee might have up their sleeves.

I looked up on the state website and I see that she still owes 2007 taxes but I don't know how to find all that other info about paperwork they might have filed. This is what I'm more interested in because I'd like to know what is going on. They're asking a lot more than she might owe but a lot less than it could be worth, even in this market.

I'm just curious if it could be had for a lot less than the asking price but I'd need to know the inside scoop I think. If I got interested enough, I'd have to do quite a few hoops myself to buy it while I still have mine and then see if I rent one or sell one.

I dunno. But THANKS for your answer!!!! (I feel better now)

[palmcoasting]

Lots of sun and palm trees with occasional hurricane

Are you in Florida? Your description sounds vaguely familiar.

Well, it doesn't have to be anything really underhanded going on. Could be that she's agreed to do this so that assests are hidden for some reason. Could be she's not quite with it and they offered to bail her out, pay her taxes and then assist her in her move.
Is she living there? Why don't you just ask her if she put the property in trust or if you can negotiate with her directly? If she's not living there, perhaps she's not educated about what she can actually get for the property. Or maybe there's something going on with a creditor that is looking to attach the house and she's just gotten it out of her name so that can't happen, she can sell and hide her assests.
Could be a lot of things.
Could be she's getting bilked and doesn't know it.
Now you've got me interested, lol. Let me know what happens.
But if you want it, make an offer. I don't think finding out too much more is going to help you at all...the corporation does this for a living. Even if she doesn't know what she's doing, they do.
And...while it may not show yet, the property may be going into the foreclosure process with the 'trustees' working out a deal with the bank.
Oh and to answer your question as to why she would just turn her deed over? Ya got me. I wouldn't do it unless they assumed the mortgage and all the liens against the property also...meaning they go into the corporations name and I'm let off the hook.

There is an investor on here, I can't believe I've forgotten his name who uses trusts to do his work..and not with ill intentions. Perhaps he'll chime in.

[palmcoasting]

I don't know how to find all that other info about paperwork they might have filed. This is what I'm more interested in because I'd like to know what is going on.

Sorry, I missed that. I don't know if your county has it, but if they do, you can go to the county clerks website and look at the public records. You will need either the property file number or in our county all you need is the name of the owner and can look it up that way. Our county has most of the records that are filed on line where you can actually view the document. If not, you can go to the county court house and look at the file.

[irish setter girl]

Could it be a bankruptcy? I know when someone files BK a trustee is hired. A former neighbor file for BK and the trustee assisted in the liquidation of anything of value to repay their creditors? Could it be this?

[irish setter girl]

I just read the previous posts. When we were investing in a lot of real estate we always had the homes in "trust" so when you pulled the tax records it would show the owner as "trust no. 583905-334". I am not aware of a trustee that is assigned unless someone had a home in a trust and then passed away and now the trustee is to sell under the rules of the trust. We did it to protect ourselves from lawsuits but I would think there would be some kind of protect in the event of a death. Interesting...let us know what you find out.

[vpcats]

Originally Posted by palmcoasting

Sorry, I missed that. I don't know if your county has it, but if they do, you can go to the county clerks website and look at the public records. You will need either the property file number or in our county all you need is the name of the owner and can look it up that way. Our county has most of the records that are filed on line where you can actually view the document. If not, you can go to the county court house and look at the file.

Hi.

I've got the folio # and property records info and I tried going into public records but there is a huge pull down list of choices. I tried a few but just get a "sorry, blah, blah, blah".

My neighbor and I have had our problems and we are not friends so I can't try to find out outright. I think it might be too complicated for me to try to get this house for bottom price but if I knew what that number could be, I'd do some legwork. I don't think I can keep two houses forever and I'd have to figure out how to do it temporarily. I might be able to sell mine a little higher than hers, even if takes a long time. I could rent it until it sells but I need the start up $$$ for the 2nd house and I'd hate to get into a HELOC. The economy is too unstable.

BTW....I'm Miami Dade county.

All these "new" ways of buying and selling with all the problems people are having is making it very difficult for me to know what the heck I'm saying.
It was so much easier before. I'm gonna have to go back to Real Estate -101.

[vpcats]

Another question:

My son said maybe I could open a LLC and buy the house under the corporation. He doesn't know much about it but he was making the analogy based on General Motors Corporation.

Is there any rhyme or reason to this?