System and method for conducting residential financing transactions

• US 20060136231A1
• Filed: 10/28/2003
• Published: 06/22/2006
• Est. Priority Date: 10/28/2002
• Status: Abandoned Application

• Current Assignee: Shape Financial Corp., Shaptm Financial Corporation
• Original Assignee: Shaptm Financial Corporation
• Inventors: Thomas, Adbulkader
• Application Number:
  US10/534,896
• Publication Number:
  US 20060136231A1
• Time in Patent Office: Days
• US Class Current: 705/35
• CPC Class Codes: G06Q 10/10 Office automation; Time management
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 50/16 Real estate

Abstract

As provided by the exemplary method described herein, a single-asset trust would be established by the originator, as settlor, naming a special purpose entity as the trustee. The trust would be subject to the terms of a written indenture designed for this specific purpose which would be used generically by all originators participating in the program. The funds necessary to acquire the real property would be deposited into the trust by the originator, as settlor, and used to fund the purchase of the property. The trust would then enter into a combination lease/contract-for-deed agreement with the lessee/purchaser. The settlor would be the initial beneficiary of the trust, but the beneficial interest in the payment stream arising from the trust would be assignable to third parties. The power to remove and appoint trustees would be granted to the beneficiary and the beneficiary would have the power to direct the trustee with respect to foreclosure of the property. These rights would be assignable with the payment stream.

Claims

1. An asset acquisition financing method, comprising:

establishing a trust vehicle by an originator/settlor as a beneficiary to said trust vehicle;

establishing a special purpose entity as trustee of said trust vehicle;

funding said trust vehicle by said originator/settlor, said funds for use in purchasing an asset to be associated with said trust vehicle; and

entering into a combination lease/contract-for-deed asset agreement between said trustee and a lessee/purchaser;

wherein said trust vehicle includes an assignable beneficiary rights including;

the power to remove and appoint trustees, the power to direct the trustee with respect to foreclosure of the property, and the power to collect a payment stream arising from said trust vehicle.

2. The method of claim 1, wherein said asset is real property.