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I inherited a house from my mother's living trust. The loan…

I inherited a house from...
I inherited a house from my mother's living trust.
The loan is still in trust.I need to identify the
Banking regulation that requires me to have a trust
Account to access the escrow funds refunded to
My mother's trust from the mortgage handling
Company. I'll give a good tip.
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Answered in 3 minutes by:
3/13/2018
Loren
Loren, Attorney
Category: Estate Law
Satisfied Customers: 39,225
Experience: 30 years experience in the practice of estate law.
Verified
Thank you for using JA. I am Loren, a licensed attorney for over 30 yrs., and I am here to help.
I am a certified expert on JustAnswer since 2009, with nearly 100% in satisfied customer ratings. So, we should be able to work through your problem.
I appreciate your patience as I review your question. I will post my response shortly.
This is general information and no attorney client relationship is established.
The site may ask you if you wish to speak by phone for an extra charge. Many find the phone call to be the easiest and fastest way to get the information they need without posting on a public forum. I am also happy to continue online.
There may be a slight delay in my replies as I am assisting other JA customers also. I will reply to your follow up questions.
WHILE WE ARE CHATTING DO NOT CLICK ON THE BUTTON TO REQUEST A SECOND OPINION. IT WILL LOCK ME OUT OF THE CHAT AND PREVENT ME FROM REPLYING TO YOU.
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Are you asking why the bank can not issue a refund check directly to you, as opposed to the trust?
Are you the trustee?
Which state?
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Customer reply replied 5 months ago
Yesterday sole remaining trustee
California
Thank you for the additional information.
It is not a banking reg, per se. It is the mortgage itself and the CA probate code. It is the fact that the living trust, which after your mother’s death became an irrevocable trust, is a separate and distinct entity from you, even as trustee.
If the trust is the borrower, the bank will issue any refund in the name of the borrower. Since the borrower is the trust, that is how the check will need to be endorsed and deposited. The bank can not issue a refund from the mortgage to anyone but the borrower. That is contained in the mortgage.
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Customer reply replied 5 months ago
The banks are regulated by Dept. Of
Treas. My mother borrowed not the trust
The trust didn't become the borrower until she passed
What is the federal instrument that
Allows this?
I am going to opt out of your question and open this up for other professionals. You do not have to stay online for the question to be active, or rate this question yet as it would then discourage others from answering. Should a professional pick it up, you should be alerted via email and/or SMS (text message) unless you actively disable these features.There is no need for you to reply at this time as this may "lock" your question back to me, thus inadvertently delaying a response from someone else.My apologies for any inconvenience and good luck.
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Attorney2
Attorney2, Attorney
Category: Estate Law
Satisfied Customers: 8,978
Experience: 30 Years in General Practice and Estate Planning
Verified

I am a different Attorney and it will be my pleasure to assist you. Can you tell me who was named Trustee of the trust? You are correct there are both probate and financial institutions laws involved in your question. I am trying to ascertain why the lender feels they cannot provide access or funds to you.

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Customer reply replied 5 months ago
I am successor trustee (I paid off my 2
Brothers and distributed the trust)
Maintaining a trust Account would cost
$150 a year.USC3500.17 SAYS ANY
ESCROW Refund over $50 must be refunded. I've received one check
For $72.10 in the 5 years since my
Mother passed. I TILD THE MORTGAGE
HANDLER I could prove in to them but
That wasn't good enough so I need
To know Identify The Federal reg...
The money just sits there.

You are going to report them for withholding the money. I am assuming based on the above conversation with the first Attorney the bank is FDIC. Is that correct?

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Customer reply replied 5 months ago
I am trying to resolve the issue in whatever
Way I can.
Customer reply replied 5 months ago
Would like to read the federal reg.

I understand. These are the Federal laws that governs Trusts https://www.fdic.gov/deposit/covered/trust.html

FDIC complaint https://www.fdic.gov/consumers/assistance/filecomplaint.html

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Federal Trade Commission Complaint

https://www.ftccomplaintassistant.gov/#crnt&panel1-1

Consumer Financial Protection Bureau complaint to investigate a bank https://www.consumerfinance.gov/

"The banks are regulated by Dept. Of
Treas. My mother borrowed not the trust
The trust didn't become the borrower until she passed
What is the federal instrument that
Allows this?"
There is nothing that automatically assigned the lender to the trust.

Do you have a copy of the mortgage documents that she signed so we can see if there was an assignment?

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Customer reply replied 5 months ago
Thank you

I have more for you.

"New Rule in 2018

The issue of adding a new person to a mortgage often arises upon the death of the original borrower, but it can come up in other circumstances as well. As of April 19, 2018, a federal rule requires servicers to promptly identify and communicate with “successors in interest.” A successor in interest is someone who receives property:

  • upon the death of a relative or joint tenant
  • as a result of a divorce or legal separation
  • through certain trusts, or
  • from a spouse or parent.

Under the rule, successors in interest get the same protections under federal mortgage servicing rules as the original borrower. Basically, the servicer must treat the successor in interest as a borrower, even if the successor is not listed as a borrower on the mortgage loan account. This means that a successor in interest is entitled to information about the account and may apply for a loss mitigation option—like a loan modification—just like an original borrower could. Though, the servicer might require the successor in interest to assume the loan as a condition of a loss mitigation offer.

A successor in interest, like an original borrower, is also entitled to enforce certain provisions of the servicing rules, including loss mitigation procedural protections. (To learn about federal loss mitigation procedural protections, see Federal Laws Protecting Homeowners: Foreclosure Protections.)

Federal Law Might Also Help

Many, if not most, loan contracts contain a “due-on-sale” provision. This clause states that if the property is transferred to a new owner, then the full loan balance will be accelerated and the entire balance of the loan must be repaid. But the federal Garn-St. Germain Depository Institutions Act of 1982, prohibits enforcement of a due-on-sale clause in certain transactions, like a transfer to a relative upon the borrower’s death. (To learn more about the Garn-St. Germain Act,..." https://www.nolo.com/legal-encyclopedia/taking-over-the-mortgage-when-your-loved-one-dies.html

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Please do not hesitate to ask me any additional questions that you may have with regard to this matter. It would be my pleasure to continue to assist you.

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You may not be familiar with how the site works. The Attorneys to not receive credit from the site for their time or with customers unless the customer provides a positive rating. We answer your questions in good faith, hoping for a good faith response regardless of whether the law is in your favor or not. If you were unhappy with my service please let me know that you would prefer to work with another Attorney and I will opt out.

Can you see the rating scale on your end, 5 stars?

Thank you for your consideration.

Attorney2
Attorney2, Attorney
Category: Estate Law
Satisfied Customers: 8,978
Experience: 30 Years in General Practice and Estate Planning
Verified
Attorney2 and 87 other Estate Law Specialists are ready to help you
Ask your own question now

Thank you very much.

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Customer reply replied 5 months ago
Welcome .If you want to know what I'm
Really doing I will tell you but there is
A 50% chance you won't like it

It was my pleasure to assist you. I do not require any further information. Would you like this question closed for privacy?

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Customer reply replied 5 months ago
No

Thank you. We appreciate your business.

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Customer reply replied 5 months ago
In answer to your inquiry. It would have held if you could have quoted the exact
Law And where it could be found that required me to keep a trust Account to
Redeem an escrow account overage. The fact that you narrowed it to federal
Banking trust law governing irrevocable trusts is probably close enough. As you got me pretty close it will probably be good enouugh as pro-se litigants are
To be construed liberally in federal court. You have done better than anyone
Else including a request to the library of Congress. I gave you 5 stars and a tip.
If you come up with the exact law And where it can be found please let me know.
I'm sure we could work something out and I may be able to reward you with
Some related litigation work if things work out with my present litigation and it's not to far out of your specialty.
I am sorry I don’t understand what you mean by rewarding me.
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Customer reply replied 5 months ago
If you could be specific I am willing to tip you again. Do you litigate in or outside your specialty?
Customer reply replied 5 months ago
Some lawyers do not go to court.
JA is a general information site. The Attorneys on the site cannot enter into Attorney/Client relationships with the Customers on the site. Thank you for using JA.
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Customer reply replied 5 months ago
Thank you for checking back with me , have a good evening.
You are welcome. And yes I go to court.
Ask Your Own Estate Law Question
Customer reply replied 5 months ago
I am not a member and I use Just answer on a ad-hoc basis,
Once my case is over I will not be using this website unless I Havre a specific need. The case I'm currently Involved in is very simple and will be over with the judges next ruling . If I prevail(likely) I will be seeking services of a litigator and will not bo asking justanswer anything on the next case. I don't know if I have an ethical way to connect with you but if I do
I would certainly enquire.
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