[Fredslist] Need sophisticated RE/Trust advice/referal for LI purchase

[bonnielink at optonline.net]

I need assistance with a real estate/trust issue or an attorney to take a referral of this matter. This is either ingenious or a scam.  Our client is desirous of purchasing a second home in South Hampton that is currently owned by a trust. After the client's bid is accepted by the trustee and he has a home inspection, he learns that the property was owned by an individual (seller) who transferred ownership into the trust of which he is the beneficiary. The seller has contracted to sell his beneficial interest in the trust to "an investor" who, in consideration of becoming the beneficiary of the trust will pay off the mortgage in a “short sale” (with his own funds). The investor/trust beneficiary then directs the trustee to sell the home to an end buyer, our client, for a sum undoubtedly greater than the short sale amount. Since the investor is the beneficiary of the trust, he has made a profit by “purchasing” the beneficial interest in the trust even though it is a short sale. The chain of title is from seller to trustee to our client. The investor’s transaction of purchasing the beneficial interest in consideration for paying off the mortgage (short sale) is never recorded. This transaction creates some issues for us as counsel (title/ethical/legal), that I would really like to discuss with someone. If you think you can help, please contact me at 
bonnielink at optonline.net. 
Thanks,  

Bonnie Link, Esq. 
bonnielink at optonline.net 
Kardisch, Link & Associates, PC 
80 East Old Country Road, Second Floor 
Mineola, NY 11501 

Direct Line:  516-565-2804 
Main Line: 516-255-4160 
Fax:  516-255-4163
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