I'm looking at a property in a trust where the trustee has passed away. The property is in pre-foreclosure and I'm hoping to work out a creative financing strategy in order to bring less cash to closing. There are no beneficiaries to the trust so I'm wondering about the best way to approach presenting a subject to deal. It sounds like the bank is operating as the successor trustee. Has anyone successfully executed a subject to deal with similar circumstances and if so how did you structure it so the bank was on board? I'm also open to any other creative financing suggestions for this type of deal. Appreciate the insights!
I'm looking at a property in a trust where the trustee has passed away. The property is in pre-foreclosure and I'm hoping to work out a creative financing strategy in order to bring less cash to closing. There are no beneficiaries to the trust so I'm wondering about the best way to approach presenting a subject to deal. It sounds like the bank is operating as the successor trustee. Has anyone successfully executed a subject to deal with similar circumstances and if so how did you structure it so the bank was on board? I'm also open to any other creative financing suggestions for this type of deal. Appreciate the insights!
Is there really a way to do this when there are no warm body people to sign for the trust besides the bank?
I'm looking at a property in a trust where the trustee has passed away. The property is in pre-foreclosure and I'm hoping to work out a creative financing strategy in order to bring less cash to closing. There are no beneficiaries to the trust so I'm wondering about the best way to approach presenting a subject to deal. It sounds like the bank is operating as the successor trustee. Has anyone successfully executed a subject to deal with similar circumstances and if so how did you structure it so the bank was on board? I'm also open to any other creative financing suggestions for this type of deal. Appreciate the insights!
You can't even buy a property without a legitimate owner or legal representative to sign a warranty deed. It doesn't matter what the strategy is.
Bo, that’s a complex situation — when a trust has no active trustee and the bank steps in as successor, it can really complicate creative-finance structures like subject-to.
From what I’ve seen, the biggest hurdle is title and consent: most title companies won’t insure a transfer until the bank legally conveys or forecloses, and the lender typically won’t approve a title transfer that keeps their note in place.
Some investors will sometimes use short-term bridge capital (through escrow only) to secure control once title clears — essentially a timing solution rather than a workaround for lender consent.
Definitely worth looping in a title company that’s handled estate or trust transfers under distress. They can tell you quickly if a subject-to path is even insurable.