Skip to content
BOL Conferences Top Gun 23
Thread Options
#1815973 - 05/20/13 09:37 PM Name of Trust has changed
Bec Offline
Diamond Poster
Bec
Joined: Jul 2010
Posts: 1,114
The Great White North
Trust name has changed. Is the only way to change the name on a mortgage loan to refinance?
_________________________
Go Packers

Return to Top
Lending Compliance
#1816164 - 05/21/13 04:16 PM Re: Name of Trust has changed Bec
Bec Offline
Diamond Poster
Bec
Joined: Jul 2010
Posts: 1,114
The Great White North
bump
_________________________
Go Packers

Return to Top
#1816196 - 05/21/13 05:24 PM Re: Name of Trust has changed Bec
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,359
Why do you need to change it on the mortgage loan?
Was the old trust revoked?
If not and this is truly just a name change, wasn't documentation done to state that the new trust assumes the assets and liabilities of the old?

This would be why we do trust loans to both the trust and the individuals. Then it doesn't matter what they do with the trust. Our loan stays in place just the way it is.

Return to Top
#1816378 - 05/22/13 01:44 PM Re: Name of Trust has changed Bec
Bec Offline
Diamond Poster
Bec
Joined: Jul 2010
Posts: 1,114
The Great White North
Thanks Truffle, all good questions that I will be asking the loan officer smile

Happy Birthday by the way. I hope it is a great day for you!
Last edited by Bec; 05/22/13 01:46 PM.
_________________________
Go Packers

Return to Top
#1816417 - 05/22/13 02:32 PM Re: Name of Trust has changed Bec
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,359
Thanks!

Return to Top
#1816446 - 05/22/13 03:30 PM Re: Name of Trust has changed Bec
Bec Offline
Diamond Poster
Bec
Joined: Jul 2010
Posts: 1,114
The Great White North
I guess I misunderstood the LO. The loan is currently in the name of the individuals only and now they have created a revocable trust. What are our options in this case?
_________________________
Go Packers

Return to Top
#1816484 - 05/22/13 04:39 PM Re: Name of Trust has changed Bec
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 80,341
Galveston, TX
None, unless the borrowers want to pay to refinance the loan, I would not mess with it. There is no advantage to the bank.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1816506 - 05/22/13 05:10 PM Re: Name of Trust has changed Bec
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,359
Has the property been deeded to the trust?
Lots of people form trusts that broadly outline the items to be covered.
Check with counsel, to verify that even if they actually recorded a deed transferring title from themselves to the trust, your mortgage retains it's first lien position. That's what you care about, not whether they signed as individual's or trustees. And as I said above, normally the trust contains language that address continuity and priority of existing obligations and encumbrances. (I typed a few trusts in my tenure as a legal secretary.)

Return to Top

Moderator:  Andy_Z