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TJ, Esq.
TJ, Esq., Attorney
Category: Estate Law
Satisfied Customers: 12060
Experience:  JD, MBA
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Is there a way for a Trust company to give mortgages and

Customer Question

Is there a way for a Trust company to give mortgages and then hide the the fact? I am in a lawsuit against an aunt & Uncle who are denying the existence of this trust but yet we are finding properties listed under their names online, yet when we look them up thru usrealtyrecords.com, they are not the owners or listed as the lien holders
JA: Since estate law varies from place to place, can you tell me what state this is in?
Customer: Michigan
JA: Has any paperwork been filed?
Customer: I am assuming so, they have been doing this for years. My dad passed away a couple of years ago & didn't tell me anything
JA: Anything else you want the lawyer to know before I connect you?
Customer: no
Submitted: 5 months ago.
Category: Estate Law
Expert:  TJ, Esq. replied 5 months ago.

Hello and thank you for the opportunity to assist you. My name is ***** ***** I'll be glad to help if I can. However, I am unclear about your question.

Can you provide a little more information about how your aunt and uncle relate to the trust that gave mortgages? Are you suggesting that they control a trust, and give mortgages to people?

Customer: replied 5 months ago.
Trustees of their parent's two trusts (my father was a trustee before passing 2 yrs ago). They rent farmland for both trusts but only deposit a portion $ to the trusts. The other $ goes somewhere else. We recently discovered multiple properties owned by my grand father. My father stated to my mother some time ago that the trustees (he & brother) loaned $ but they would not loose money because it was insured. I would be interested in talking with yu further.
Expert:  TJ, Esq. replied 5 months ago.

Hello again. Thanks for the clarification.

No, it's not really possible to give a mortgage and hide it. This is because the mortgage must be public in order to protect its lien priority. If the mortgage is not public, then another mortgage lender could grant a mortgage to the homeowner, and that mortgage will have lien priority over the non-public first mortgage. This is important because in the event of a foreclosure, the lender with priority will be paid first. Accordingly, it would be incredibly foolish for a lender not to make the mortgage public by recording it in the county land records.

Having said that, I wouldn't necessarily have any faith in what you find at usrealtyrecords.com. I'm not entirely familiar with that website, but I don't see that they guarantee to provide the title search for properties.

Does that answer your question? Please let me know if you need clarification, as I am happy to continue helping you until you are satisfied. Also, please remember to provide a positive rating via the stars (and note that your positive rating is the only way that I'll get credit for helping you, so it is much appreciated!). Thank you. :)