Proper way to handle

[eltaquito]

Porperty in a family trust (Smith Jones Family trust) Lender wants Sally Jones as the borrower name. What is the proper way to handle this. Appraisal was none in March and as of today public record still indicates the trust as the owner.

Eltaquito

 

[jlabauve]

You are not responsible for what the public record says. Your responsibility is to report the owner of record. You are also required to put the borrower's name. Two separate things.

Borrower: Sally Jones
Owner: Smith Jones Family Trust

Additionally, since the appraisal was completed in March, to change the owner or borrower at this point would be misleading (unless you are correcting a mistake that you made.) It sounds like you didn't make any mistake.

Stand pat.

 

[eltaquito]

I was not given any information that the borrower would be something other that the owner of public record. I do beleive in this area ( Southern Ca) that the customary /
proper procedure for a refinance when property is held in a trust is to transfer the property out of the trust and then back into the trust after the refi. AS OF TODAY THIS HAS NOT BEEN DONE. I feel this is a lender issue . Appraisers appraise real property and not borrowers.

Elatquito

 

[Lee Lansford]

Porperty in a family trust (Smith Jones Family trust) Lender wants Sally Jones as the borrower name. What is the proper way to handle this. Appraisal was none in March and as of today public record still indicates the trust as the owner.

Eltaquito

There are two items of relevance:

1. The OWNER of public record.

2. The named BORROWER.

The two may not be the same and I don't see that as being my problem.

 

[Ron Runyon]

The borrower is whomever the lender states it is....the owner of public record is what you find in your research...if this raises a flag for the lender then so be it.

 

[Crippled Chef]

Owner of record

I run into this on reverse mtg refi's...a lot of senior citizens have their home in a irrevocable trust or are named as a life tenant...can't refi either...the deed has to be a real person.I try to remember to report what I find, regardless of what a lender WANTS...my 2 cents.