TMc993

With all due respect to your mother, you need to minimize your exposure as much as you possibly can. If you don't protect yourself, you can't help her. In the end, the parent becomes the child and the child the parent, so be prepared to have to make decisions that she just isn't going to like. It's an unfortunate, but inevitible path most of us go down...Once as a child and then again as a parent.

Good luck...

Terry

DC from Cape Cod

In 20+ years in the business, I have seen absolutely no difference in how the signatories are treated or how their respective credit scores are impacted. She needs to be aware of this.

Also, if he was "put on" a document and did not sign it, his exposure could be limited.

icelatte

She is the sole person on the loan. I'm still trying to get a definitive answer as to who is on the deed. I think it's the trust only buy I'm still waiting for phone calls back.

Just about every option, including having me pay off the loan, will need by father's signature or death to truly close the matter.

If he no longer wants to communicate with any of us, I'm considering telling her to default. As long as he's uncooperative, it may be the only way to remove his involvement. I'll just buy a house in her same neighborhood or wherever she wants to move.

It's the hardest option to swallow, but that's why I've asked for your impartial views.

Thanks everyone. I'll give you an update when we're closer to a resolution.

icelatte

Update:

My brother found a phone that my father would pick up and gave me the number. It was a painful conversation, but I convinced him that it was in his best interest (so he won't have to hear from my mother again) to sign the POA and everything else the title company needs.

Thanks again everyone for your perspectives.

IamSMC

Though I run a title insurance agency in another state, here are some opinions:

If its an actual recorded deed, check here:
http://stlouis.missouri.org/citygov/...alrecords.html

Without knowing how the recorded deed reads, your questions regarding the trust and the POA can't be answered.

How was title held before the transfer to the trust?

If the deed is titled in the trust, who are the trustees?

Trustees can't give a POA to another person. Even if there are two trustees, one trustee can't give a POA to the other trustee because the trustee is already acting as a fiduciary.

As you wrote in your first post, "The house is titled under a trust for both my parents.", there appears to be no reason for your father to give your mother a POA. It appears they're both not in title.

Though you say your mother "is the sole person on the loan.", she can't actually refinance because she's not in title now. The trust has to make the new loan.

Lastly, you really need to get in touch with the trust attorney regarding the trust.

A real estate attorney is a must.

And a divorce attorney can advise you what you should do now.

I hope things work out.

icelatte

Thanks. This is happening in Florida.
The deed that currently exists apparently contains several errors but is the one currently in the court files. One of those errors is who is actually on it (trust vs. individual trustees). The mortgage company needs the deed revised before allowing my mother to refinance. Two title companies have both said they require my father's signature on several documents, of one which is a POA, to correct the deed.

I suppose we could keep on looking for another title company for a different interpretation, but it seems a moot point since my father has agreed to sign whatever to resolve this.

Ed Eubanks

Icelatte:

Good news that you got in touch with your old man. With his cooperation the title company can likely cure the titling problem. Just remember that the title company has a big stake in correcting the mess.

Now for what little advice I can give as a real estate and estate planning attorney from another state:

Insist that your mom (or the trust, if that is how the title is vested) buys an Owner's title policy at the closing of the refinance. Also please convince mom to hire an experienced real estate attorney to review the title policy commitment before the closing. It's not a big deal and shouldn't be expensive -- considering what is on the line.

PM me if you'd like to talk more.

Good luck,

Ed

IamSMC

Might not be possible if no consideration passes.

icelatte

OK

Have a new lawyer on board. She tells me the prior trust was very badly written and that my mother got horrible advice to place the house in the trust.

The mortgage servicer is asking the lender to extend the grace period.

My father will sign anything to remove himself from the property.

Now the title company is being the pain in the ***. It turns out they were going to send my father documents to clean up the current deed but would then still place the property in the trust! The new lawyer explained to them we want it in my mother's name only. Now they want my father to write a letter with a copy of a photo ID to say that he understands that he is relinquishing any claim to the property by signing the documents! I understand they're just trying to protect themselves but this seems like total BS to me.

wellcraft290

I am a mortgage banker. Why are you relying on a title company to write a new trust? That is not what they do. Yes they can add or delete someone off title because it is simple and generic forms. I can;t believe your atty is letting you use teh title company for this function.

Nowwho is actually on what? I think yrou confused. If your father was on the title and trust initially i would call thet title company and the priginal lender and threaten lawsuit and contacting teh banking dept. He had to sign and if he didn't then they have issues.

You can't lend your mom the money as a mortgage only personal loan if your father won't sign. And I know you think the bank will want to extend the foreclusure date but in all honesty they want your house, They are thinking finally a house that defaults and actually has equity. Think of how many that are underwater.