Wells Fargo / ASC doesn't like Land Trusts all of the sudden?

[obiwan1250]

Had a curve ball thrown at me today, maybe by a rookie or newbie in the L/M department, but wanted to run this by the group to see if anyone else has heard of this with Wells Fargo. 

The L/M requested a Listing Agreement, signed by the Borrower, yet the property is held in the name of a title holding land trust so the Borrower wouldn't be the authorized signer.   I do it this way to avoid nuisance liens attaching during the time I'm negotiating the SS.   That's just how I do it (me and a gazillion other SS investors).  FHA has no problem with seasoning issues (after 90 days, of course), so this process is of benefit.  Yet, if WF is going to throw down another gauntlet to jump over, under, around or through, I'll have to reconsider whether I want to work any SS's with them on the 1st. 

I have three ASC/Wells Fargo files open and if they insist that the Borrower has to sign the listing, even though the borrower's name isn't on the title, they may be insisting on something that is a violation of laws in my state!   Someone who is not the owner cannot list the property for sale. 

Anyhow else run into this with WF?

Also, I've heard WF has adopted BoA's stupid 30-day no transfer rule.  Any truth to that?  If so, I may need some work-around advice (the fix-a-flip type of option I already know about).   I suppose holding it for the 30 days is one option, but surely WF isn't going to get as stupid as BoA, or are they?   

[MichaelQuarles]

Yes they have a 30 day rule which isnt honored by the title company I use and they happen to be the nations largest... The terms arent even required to be agreed to by anyone... Certainly not the buyer who would have to stipulate to the deed restriction...

As far as someone must own a property to list it, I am not certain you have that correct... What state are you in?  Our here in California we create an interest in the property once we have the right to buy and therefor have the right to sell. The NAR MLS rules are clear that the seller must authorize the insertion into the MLS. Which requires a listing agreement... They left the word "OWNER" off.

If you're in a trust- most trusts allow the trustee the right to inter into a listing agreement on behalf of the beneficiary... Make the borrower a trustee for a day...

I dont see the issue..

[obiwan1250]

Thanks Michael,
Yes, I suppose I can ask the Borrower to sign a listing agreement, for a day, yet it's such BS that this type of action is being requested in the first place.   I'll have to read up on this a little more, about allowing the beneficiary to be a trustee for a day.   If one does this, I'm wondering whether any nuisance liens that are attached to the Borrower could then attach to the Trust property.  I think it could be problematic to start fooling around with who holds equitable title to Trust Property, and who is the Trustee.   Some of the protections afforded the beneficiary could dissolve -- sort of like piercing the corporate veil. 

This is just a stalling tactic on Wells Fargo's part, if you ask me, and I can't figure out their motive.   Seems to me that a Trustee is to the corpus of a Trust what a CEO is to the stock of a corporation -- a hired hand (unless the CEO owns stock, which they do so often and that does tend to cloud the issue, but that is a whole 'nother story).   If the Trustee is put in place to perform certain fiduciary responsibilities, particularly financial responsibilities for the benefit of the beneficiaries, to allow the beneficiary to become a Trustee for a day just seems like opening Pandora's box. 

If that is done, it's almost like a revocation of the Trust, then a reinstatement?   I don't know. I'd like to get some feedback from an attorney. Maybe I'm making a mountain out of a mole hill, yet so is WF.     

[MichaelQuarles]

Why are you keeping the Borrower as the Bene?  Who is the ultimate Buyer? This kinda thing is what ASC is trying to avoid... They want a clear understanding of who the buyer is... And want to make certain everything is arms length...  Of all the SS Ive done I have yet to have a lien bite me...  So if your transferring it to protect that happening I would suggest have more opportunity then you can take down so you can pick the ones you actually want...