When real estate title is held by a third party, another individual or an entity such as a corp. or LLC or trust - how would you handle the following:
The mortgage is written for situations where the person signing the note is one and the same as the person owning the real estate being pledged, and therefore refers to the titleholder as "borrower" and references the note signed by that person (when it was actually signed by someone else). We can fix this by having the titleholders sign the note so that our lien is okay and our lawyers are okay that we are within our rights to do that because it is "necessary to create the lien". However, for Reg B purposes, should we always limit the liability of the titleholders to their ownership interest in the real estate, even limiting liability of corporations and LLCs - or do we just have to worry about the individuals for this Reg B issue?
These are usually consumer mortgages, but sometimes they do ask that a corp or LLC, etc. borrow.
We would prefer at all costs to not have special loan documents for these third party situations. We can just add a rider to the note to limit liability.