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#2097230 - 09/07/16 04:24 PM REG Z - LAND TRUSTS IL
Cara Hoff Offline
New Poster
Joined: Jan 2013
Posts: 11
IL
Anyone have suggestions on how to handle delivery of disclosures (preliminary, final, notice of right to cancel) to a Land Trust. Trust is saying they won't sign. Trying to comply with Laser Pro suggestion based on recent litigation - I am parroting (June Release Notes) that anyone involved Borrower, Beneficiary, Land Trust Trustee should get all disclosures.

Ex. HELOC send preliminary disclosure copy, notice of rights to cancel, and credit agreement/disclosure copy along with Letter of Direction? Can we put that we require they sign the Notice of Right to cancel, they are saying they won't. Would a written statement to that fact be sufficient? Looking for opinions

Specific to ILLLINOIS Land Trusts ONLY informational links below.

http://www.lexology.com/library/detail.aspx?g=961bb7d6-f46e-4d2a-8167-d3c1a9620af0

http://www.schiffhardin.com/insights/pub...re-requirements

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#2097445 - 09/08/16 02:31 PM Re: REG Z - LAND TRUSTS IL Cara Hoff
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Trust is saying they won't sign.

The Trust doesn't sign anything. The trustees sign for the trust. You have failed to say who is getting the loan - is the trust your applicant or are they just pledging the property? If the trustees are refusing to sign documents, you really need to be sitting down with your legal counsel.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2097463 - 09/08/16 02:53 PM Re: REG Z - LAND TRUSTS IL rlcarey
Cara Hoff Offline
New Poster
Joined: Jan 2013
Posts: 11
IL
Applicant = Borrower One
Grantor = Land Trust
Signers of Note = Borrower One
Signers of Mortgage = Land Trust, Trust Officer (Trustee)
Signers of Letter of Direction = Beneficiary Borrower One's Wife

Borrower One will get all disclosures docs, Beneficiary will get copy of all disclosures as well as rights to cancel, Trustee will get the same but won't sign the Rights to Cancel.

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#2114820 - 01/19/17 11:33 PM Re: REG Z - LAND TRUSTS IL Cara Hoff
Dave M_TCA Offline
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Dave M_TCA
Joined: Oct 2000
Posts: 686
Wherever my most benevolent em...
A 2015 supreme court case in IL regarding land trusts, the trustee of the land trust has the right of rescission so they have to get copies of the closing disclosure and right to rescind. As long as you can prove you provided the documents in a timely manner, the fact that they didn't return signed copies should be OK.
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David J Mulkerin, CRCM
All opinions expressed are mine and not those of my employer and are not to be taken as legal advice.

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