Posted by Buddy Young on 5/29/12 11:39pm
Msg #422163

Certification of trust

I have a signing tomorrow. A refi on a property in trust. In looking at the docs it looks like they are not taking it out of trust before refinancing. All the other ones I've done in the past the lender requires the property to be taken out of trust before refinancing and the borrowers put it back in after refinancing.

In the package is a certification of trust, I know we cannot certify capacity and also the borrowers do not sign trustee after their name.

This package gives me the impression that they want the borrowers to sign as trustees. I will call in the morning to clerify.

Do any of you experts have a recomendation on this one. Continuing to look at docs.

Thanks for any help

Buddy

Reply by LKT/CA on 5/30/12 12:10am
Msg #422166

When I took real estate classes at community college for my R.E. license, the broker that taught the Escrow class I took in 2009 said it's been unnecessary for several years past to remove property from a trust to refi it. It's still done but so not necessary. I've done both types of signings: property remained in trust or removed from trust. Since lenders are different, and absent any instructions, call for clarity (as you mentioned you'd do). Not any big deal, nor anything to lose sleep over (well, at least not to me).

Reply by CJ on 5/30/12 12:23am
Msg #422167

I see these a lot. It's really no big deal (to us as notaries).

Some lenders take it out of the trust, and some don't. The most important thing you need to know is this: when the word "Trustee" is after the borrowers name, does title want the borrower to sign "trustee" or not? They are very picky about this, and if you choose the wrong way, you could blow the loan. So call your signing service and ask them every time. If they do sign "trustee", it has to be in cursive, not printed.

Sometimes they will have to sign a document twice: once as themselves and once as trustee. Be sure to get BOTH signatures.

If it says, "Individually and as trustee" after their typed name, just have them sign their name as it is typed, like normal.

The Certification of Trust is somthing that the bank needs that has details about the trust. The borrowers are just sigining that the information about the trust is true. Not your problem.

When you notarize, just don't put "trustee" after the name of the person you notarize (in the ack or jurat). Just like you would not put "husband and wife" or anything else.

Sometimes the Certification of Trust has to be filled out. Have them do it. The information (name of the trust, date of the trust) is on the vesting on the Deed of Trust. You'll get the hang of it.

If you have any questions, be sure to review them with your signing service. Have someone's phone number with you if it is after hours.

Reply by Buddy Young on 5/30/12 12:31am
Msg #422168

Thanks for the info.

All lenders seem to have different packages as we all quickly learn. I have just never ran accross this particular situation before.

I do have it figured out now.

Thanks for your help.

Buddy

Reply by Lee/AR on 5/30/12 6:37am
Msg #422170

I have found the 'best practice' to be CALL every time

Seems they all have their own ideas of how these 'trust' things should be signed. Many times, even tho' 'this' or 'that' is printed below the signature line, some want it ALL signed and some only want their name. So many variations of 'the right way' that I call for direction each time and am usually very glad I did.

Reply by JanetK_CA on 5/30/12 11:58pm
Msg #422260

Re: I have found the 'best practice' to be CALL every time

I agree, Lee/AR. In my area, I see lots of properties in trusts and I've seen all kinds of combinations and wording.

Buddy, I think CJ did a great synopsis of how to deal with trusts, but any time someone says "I've got it now", especially in relation to this subject, I think it's cause for worry... My advice is to never assume you've got it, because as soon as you do, you'll run into a situation where a different party - whether it be lender or title - will want something different. Like Lee said, it's a good idea to call for direction every time, unless there are instructions included in the package, or unless you've previously received an answer from that same lender/tc combination and you're sure they'll want this one handled the same way.

Reply by Penney/CA on 5/31/12 10:34am
Msg #422286

Re: I have found the 'best practice' to be CALL every time

I agree with Les. I call and request the signing company on every one of these to verify with the Lender on how the borrower's are to sign. A lot of lenders are getting away from signing docs with the entire Trust verbiage having to be handwritten as part of the signature.