Replies to This Discussion

Permalink Reply by Kyle Souza on November 11, 2010 at 12:15pm

is it a short sale?

Permalink Reply by Elise Fay on November 11, 2010 at 12:19pm

WOW. sorry you are having trouble BUT...I just went thru this same thing. We lost the battle with Wells. We sent them a declaration of trust but it was written up by an attorney and not the original docs. That did not work. Really if you can buy it outside of the trust and quit claim deed it back in, that would be easier. The buyers in my case were purchasing it within an Irrevocable Trust and that was more difficult.

In the end the buyers sent to me, the sellers agent, the full body of the trust. Normally those docs do not contain anything too confidential..tho it was to the buyers. I did not open it but just forwarded it on to the negotiator and we got it done. We tried everything you could think of to get around this. The reason the bank wants this is because they not only need to see that the Trust gives you the authority to purchase within the Trust but they need to see that the Seller is not party to the trust, not a Trustee, Beneficiary etc. That is because they must verify that this is an arms lenght transaction and that the seller will not benefit from something hidden deep within the trust.

It is just the body and instructions for the trust that they want. No addendums or special conditions and clauses that you may have set up. Good Luck

Permalink Reply by Alan Remigio on November 11, 2010 at 12:29pm

Neil,

I have always used a very basic Trust document showing the Trustee and beneficiaries. The lenders are looking for other than "arms length " parties in these and other entities such as LLCs. The trust can change their beneficiaries, provisions and trustees any time with amendments to insure confidentiality later. I am not an attorney, so check with your attorney on how to recreate that "cloak" after submitting the trust as part of your package. You have very few options that will not consume time.

Permalink Reply by Loren Hoboy on November 11, 2010 at 12:38pm

This is actually simple. The trustee generally should have the original formation documents. In many cases the first page defines who can sign for the trust. Attach a copy of the top page and the page designating the trustees that can sign and the executing page. Most are short enough to be copied in full if you need to. Blank out any confidential information.

Permalink Reply by Jeff Payne on November 12, 2010 at 1:31am

What is the secret with trust documents? I am not familiar with them but can't really see what the secret would be and why it would be a big deal to let the lender see them

Permalink Reply by Neil L. on November 12, 2010 at 6:38am

Thanks everyone for your comments. I think what i'll do is send the declaration document, with all the information in it. That way they can verify what they need and if i want to.

Sharing Trust documentation, is like sharing a 'will" in my opinion. You don't just throw it out there telling everyone what your plans for the person taking over are. You give instructions to the trustee and leave it at that. I suppose the lender is bound to keep it confidential too so we'll just give in...