What Is A Trust?

Trusts are separate legal entities, like corporations.

Trusts hold assets for you or for the benefit of others.

Assets inside a trust are managed by a trustee who has legal responsibility for managing and overseeing trust proceeds in accordance with your wishes. The trust stipulates how your assets should be managed, and how, when and to whom your assets will be distributed.

Many people think only the wealthy can benefit from trusts. But this is simply not true. Trusts are highly flexible and can provide for an almost unlimited combination of needs, circumstances and objectives.

Because they can be designed to satisfy such specific needs and circumstances, trusts can address the concerns and objectives of most people. These include:

What Can Go into Trusts

Stocks and bonds, Real estate, Mutual funds, Variable annuities, Capital management accounts, Life Insurance, Art, Collectibles, Personal possessions; and more

Benefits of the Land Trust

  • have privacy of ownership and nonresident ownership.
  • avoid probate.
  • limit exposure to judgments and liens
  • avoid marital interest in title.
  • insulate from the hazards of individual ownership.
  • transfer beneficial interest.
  • use beneficial interests as collateral.
  • prevent partition of the land.
  • protect in the acquisition, development, and operation of apartment developments, condominium apartments, or cooperatives.
  • facilitate estate planning.
  • provide partnership, corporation, and agricultural land-use protection.- See more at:

What is a tax certificate and a tax certificate sale?

A tax certificate is a first lien against property and shall supersede governmental liens. The tax certificate sale is an online auction process in which bids are entered and awarded to the buyer with the lowest interest rate bid, beginning at 18% and bid down to 0 in 0.25% increments. The buyer who wins the bid will pay the taxes, interest and fees that are outstanding and begin earning the rate of interest awarded during the auction on this total amount. Simple interest accrues on a monthly basis. For example if the tax certificate earns an interest rate of 12%, then interest will accrue at the rate of 1% per month until the tax certificate is redeemed. If there are any delinquent properties that do not receive a bid, those tax certificates are issued to the county at 18%.
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What is a Tax Deed Sale?

Property owners are required to pay property taxes on an annual basis to the County Tax Collector. If the owner does not pay his/her taxes, in June of the following year a tax certificate will be sold by the Tax Collector. Generally, if the tax certificate has not been redeemed within two years, the holder of the certificate can apply to force a public auction of the property. This auction is referred to as a “Tax Deed Sale” and the monies collected from the sale are used to pay off the amount owed to the certificate holder.
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What is a Surplus Tax Deed Sale Surplus?

Can I make payment arrangements?

Delinquent taxes can be only paid in full with certified funds.
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Someone bought a certificate on my property, does that mean they now own it?

No. The certificate holder has no claim on the property. However, two years after taxes become delinquent, the certificate holder can place a Tax Deed Application on your property. (Example – 2015 unpaid taxes which had a certificate sold by June 1 of 2016, can have a Tax Deed Application made on it beginning on April 1, 2018). After a tax deed application is made, the property will be scheduled for auction and if the taxes are not paid, will be sold to the highest bidder. If that happens, you have lost any claim or ownership on it.
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What is a Tax Deed Application?

Tax Deed application is the action, initiated by a tax certificate holder, which begins the process of selling a property at public auction for the delinquent taxes.

Tenants Required to pay HOA Assessments: If a homeowner is delinquent to the association for monetary obligations due to the association, the association may demand that any tenant occupying the parcel pay to the association future monetary obligations relating to the parcel. If the tenant fails to pay, the HOA is authorized to file an eviction action. The law is unclear as to whether the tenant is required to pay only the unpaid assessments to the HOA or the entire rent due for the parcel. This will need to be clarified by the legislature.

Fines and Liens: If a member is delinquent for more than 90 days in paying a “monetary obligation” due the HOA, then the association may suspend the rights of a member to use the common areas and may also levy a fine of up to $100 per violation. A fine of less than $1,000 shall not become a lien against a parcel. The HOA, however, cannot eliminate the member’s right to use access easements or cut off utility services to the parcel. The new legislation added the 90 day delinquency requirement and also added a new notice provision required of associations in connection with the levying of fines or suspensions.

Reserve Accounts: The new law clarifies that reserve accounts for capital expenditures and deferred maintenance items can be terminated by approval of a majority of the voting interests in the HOA. Financial reports for the HOA must contain new statutory language when the budget provides for reserve funding and a separate disclosure if the budget does not provide for reserves.

Special Assessments prior to Turnover: Before turnover, the board of directors appointed by the developer may not levy a special assessment unless a majority of the owners (other than the developer) have approved of the special assessment at a special meeting of the members.

Directors: Voting for The new law clarifies procedures for allowing voting by secret ballot by members who are not in attendance at a meeting of the members for the election of directors.

Board Vacancies: The law allows the board of directors to fill a vacancy on the board before the expiration of a board member’s term. Alternatively, the board may hold a special election to fill the vacancy.

No Compensation for Officers and Directors of HOAs: The new law prohibits a director, officer or committee member from receiving compensation from the HOA for service to the association; however, reimbursement for out-of-pocket expenses is allowed. This provision, however, does not apply to a developer of the subdivision.

Loss Mitigation is the term lenders and servicers use to describe the process they use in resolving loans in default.

Reinstatement: Reinstatement occurs when the homeowner brings a delinquent  mortgage current or “cures the default” by paying the total delinquent amount.

Forbearance: An agreement that allows the homeowner to pay less than the full amount of the mortgage payment or pay nothing for a given period.

Repayment Plan: An agreement that gives the homeowner a fixed amount of time to bring delinquent mortgage payments current by paying the normal monthly payment. PLUS an additional amount.

Loan Modification: A written agreement between the lender and the homeowner that permanently changes one or more of the original terms of the note

Short Sale: An agreement to sell the property prior to foreclosure for less than the total amount owed on the mortgage and the lender servicer forgives any shortage.

Deed in lieu of foreclosure: The homeowner deeds the property to the lender/servicer to avoid foreclosure

Loan Assumption: Even if your mortgage isn’t assumable, your lender may allow someone else to take over the payments and bring the loan current. This may allow you to sell your home.