EHTrust™ vs Property Sale

Ordinarily a  sale and transfer of real estate happens when an
owner, choosing to sell, seller places another party on the
property’s publicly recorded title as a new owner.  When this
process is done in the “regular” fashion–‘depending on the
property’s geographical location–the deed (‘grant deed, warranty
deed, or a bargain and sale deed) is transferred within an “escrow”
process, wherein the properties legal title is entrusted with an
escrow settlement official to hold until the transaction has been
completed.  This trusted, temporary holder of legal ownership
is virtually always an officer of a licensed and bonded escrow
company; a settlement official within a title insurance company; an
attorney; or sometimes it may be the real estate broker responsible
for the sale.

It should be noted here that this temporary conveyance of
title-ownership in escrow serves to protect both buyer and seller
from illicit or untoward actions by the other party (‘such as, say,
attempting to unilaterally alter the terms of the purchase
agreement; secretly borrowing on the property prior to transfer;
causing liens against the property following title inspection,
tampering with the verbiage in the public record, etc.).

HOWEVER, in a bonafide “land trust transfer (e.g., as is
used the ODWM EHTrust Transfer®)”…’instead of granting the
properties title to a buyer (i.e., “vesting it in the
buyer”), title is vested in a qualified third-party trustee (acting
as title-holder in a beneficiary-directed, title-holding trust
(‘most commonly referred to as an Illinois-type “Land Trust”), and
appointing the acquiring party (the “would-be buyer”) to the
position of “Remainder Co-beneficiary.” At this point that party
receives all (100%) of the benefits of fee-simple real
estate ownership, along with the added advantage of virtually
perfect asset-protection, relative to future legal threats against
the property.

In other words, by employing the EHTrust Transfer®, the
acquiring party is afforded full income tax write-off for mortgage
interest and property tax expense; future appreciation potential,
equity build-up from mortgage principal reduction; full use and
occupancy of the property; all available water and mineral rights;
and the right to lease, sublease, rent or sell (‘as mutually
agreed-to and stipulated in the contract).

In addition to the above,. the resident beneficiary’s (“buyer’s”)
real property ownership is shielded against creditor judgements; IRS
and/or state tax liens; bankruptcy; actions in marital dissolution;
obligations in probate; and potentially irreconcilable dispute
between the parties themselves.

In that the land trust transfer is directly analogous to a
long-term  escrow process, the presence of the third-party
title-holder prevents any party’s untoward or illegal actions, or
actions that would be detrimental to the other party/ies or to the
property’s title (i.e., nothing can be done with regard to title,
the underlying loan or the property itself without 100% concurrence
by all beneficiaries).

WHAT ARE THE DISADVANTAGES? Other than the need for all parties to
comport themselves in accord with the best interest of the other
parties, the EHTrust actually affords far more benefits than does
any seller-assisted financing device, or even a traditional home
sale and purchase…’especially from  standpoint  of
asset-protection.  One’s ownership of beneficiary interest
remains wholly private, secret, unrecorded and unassailable by
judgement creditors.