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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] More on the title holding trust... Posted by Ward-CA- on June 02, 2003 at 5:34 PM In Reply to: Use of the Certification of Trust posted by Mike on June 02, 2003 at 10:51 AM : Hi Ward, : I have a couple more questions on using a Certification of Trust when obtaining a loan that I was wondering if you can answer for me. : 1) Isn't the actual note, which I am still personally signing with the lender, going to be a recorded document at the county recorders revealing me as the owner? : 2) I have a builders contract I need to sign. Should I actually have the trustee sign this? : Thanks in advance. : - Mike =•=•=•=•=•=•=•=•=•=•= #1. Promissory notes are never recorded. The deed of trust of course is recorded, but not the note. #2. No, you can more easily do your pre-escrow paperwork in your name with an “or assigns” after it. Then when you open escrow, tell them you want to put the property into your trust. Make sure your selected lender is OK with making their loan to the trust. If it’s a conventional loan they won’t because they’ll be operating pursuant to FNMA’s (Federal National Mortgage Assoc.) underwriting rules. They won’t promise to purchase a loan made to a non-living entity like a corporation, partnership, LLC or a trust. However if the loan is a “portfolio loan” (that your lender is going to keep rather than sell) then you shouldn’t have any problem. Try working with WAMU (Washington Mutual) before giving up on lenders. They have a track record with lending to trust entities. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Hi Ward, : : I have a couple more questions on using a Certification of Trust when obtaining a loan that I was wondering if you can answer for me. : : 1) Isn't the actual note, which I am still personally signing with the lender, going to be a recorded document at the county recorders revealing me as the owner? : : 2) I have a builders contract I need to sign. Should I actually have the trustee sign this? : : Thanks in advance. : : - Mike : =•=•=•=•=•=•=•=•=•=•= : #1. Promissory notes are never recorded. The deed of trust of course is recorded, but not the note. : #2. No, you can more easily do your pre-escrow paperwork in your name with an “or assigns” after it. Then when you open escrow, tell them you want to put the property into your trust. : Make sure your selected lender is OK with making their loan to the trust. If it’s a conventional loan they won’t because they’ll be operating pursuant to FNMA’s (Federal National Mortgage Assoc.) underwriting rules. They won’t promise to purchase a loan made to a non-living entity like a corporation, partnership, LLC or a trust. : However if the loan is a “portfolio loan” (that your lender is going to keep rather than sell) then you shouldn’t have any problem. Try working with WAMU (Washington Mutual) before giving up on lenders. They have a track record with lending to trust entities. : Hope this helps. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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