My wife and I made a living trust in 2007. Since we refinanced of our house in 2009. We have received a Substitution Trustee document showing a transferred trust dated 12/28/05. It does not take notice of my living trust that was recorded 08/09/07. I have faxed the Living Trust Recorded file to my loan bank to make sure they are aware. I received a form titled “ Borrower Trust Information and Certification Form” requesting to be filled out, notarized, with a copy of the Deed transferring title to the trust and a $100 processing fee. Is this a normal practice and is the living trust in any jeopardy?
Your question is not clear, but the $100 processing fee doesnt make sense. There is a difference between the deed of trust and a trust transfer deed (which could be a quitclaim deed from you to your trust or a grant deed from you to your trust). The deed of trust, is essentially the security interest for your mortgage and encumbers title but does not change it.
The Substitution of Trustee that you are referencing most likely is dealing with the deed of trust. You can contact the recorders office to determine the current vesting of your property. If its in your trust there is nothing to do. Often when refinancing, however, the bank will make you take the property out of your trust and put it in your name. You would then need to do a deed to transfer it back in. An attorney would charge you between $75 and $125 plus the recorder's fees.
Your living trust is not in jeopardy. It is very common when refinancing for companies to take your home out of your living trust and put it into your individual names. So that may account for your trust not being on the deed of trust or loan. Your finance company is willing to add your trust to the loan, but they charge for the paperwork.
It is not really necessary to have your trust on the loan docu,ents or deed of trust. What you really need is to make sure your home is currently titled in your living trust's name. You can add the trust to the loan if you like, in which case just pay the $100 for the processing and have it completed.
This question is confusing. I think there are two separate matters. A loan has 3 parties - The lender, the borrower and the trustee. The trustee is empowered to act for the lender in a foreclosure matter. A Substitution of Trustee may refer to the bank naming a different trustee to act in case of a foreclosure. It is not unusual in this market with so many financial companies closing or consolidating to change trustees. The document you received may just be notifying you of that change. Once you notified your lender that the house was tranferred to your 2007 trust, the Borrower Trust Information and Certification Form was sent to you to provide the lender with current information concerning your trust. Neither of these issues puts your trust in jeopardy. I hope this helps.
Lonnie K McDowellBankruptcy AttorneyPrescott Valley, AZ ·
You do not indicate whether your house was ever transferred into the living trust. If it was put in the trust before the lender refinanced, the refinancing company may have screwed up on the paperwork and you should not pay them $100.00. If you never put the house into the trust (a common error) then you need to do so.
The trust is not in jeopardy, but it only controls assets that have been put into the trust. You need to check and see if the house and your other property has been properly put in the trust.
