02-25-2015, 10:54 AM
Kapohocat
You raise an interesting point about conversions into revocable living trusts RLT. Wells Fargo permitted you to do it. I was consulted on this question since people wanted to know if it was cause for the bank to charge a violation of the mortgage.
Why would the end bank permit it unless, after the RLT conversion, the Lender's Title Insurance policy we required you to buy was still valid?
Now that brings me to a question. How can the homeowner's policy die, and Lender's policy still live?
Why would a lender permit the homeowner to become naked without the required homeowner's policy?
I admit I have not researched this issue much, however, both suspect and confirmed via a real estate attorney and article in the Washington Post that the death upon RLT is a lie.
See:
Harvey S. Jacobs real estate lawyer
http://www.washingtonpost.com/realestate...story.html
I admit up till reading his article I also was understanding the homeowners policy died.
What I suspect is someone filed a claim in the name of the RLT before revocation. The title company then said hang on a tick, who are you? Claim denied. Then I bet they revoked the trust, and the Title company said claim was filed too late. Claim denied.
In this thread I am not trying to prove RLT conversions do not kill the Homeowner's policy. However, you help to prove the point that the document is alive after closing.
It is alive and gives the buyer of the policy rights if the title becomes unmarketable in the future.
Now: Let's look at me. I have a $ 1/4 mm line of credit on my home. It is public record. Wells Fargo provided me that LOC. If they didn't, instead of being able to utilize capital invested in my home to buy a sailboat and sail across the Pacific I would have been locked into Puna.
Sophisticated buyers look at 2% and 3% money from the bank in the form of a LOC when deciding to buy. WF will not offer a new buyer of my home a LOC. Yet, my home is no where near the flow, and both I and WF are insured.
Nothing physically happened to my home. It was an attack on my title that has caused me harm.
The ability for a reasonable new buyer determines if Title has been damaged.
To prove damage to my title all I need do is show Wells Fargo continues to offer LOC on homes in other parts of Hawaii but they have red-lined my entire neighborhood
You raise an interesting point about conversions into revocable living trusts RLT. Wells Fargo permitted you to do it. I was consulted on this question since people wanted to know if it was cause for the bank to charge a violation of the mortgage.
Why would the end bank permit it unless, after the RLT conversion, the Lender's Title Insurance policy we required you to buy was still valid?
Now that brings me to a question. How can the homeowner's policy die, and Lender's policy still live?
Why would a lender permit the homeowner to become naked without the required homeowner's policy?
I admit I have not researched this issue much, however, both suspect and confirmed via a real estate attorney and article in the Washington Post that the death upon RLT is a lie.
See:
Harvey S. Jacobs real estate lawyer
http://www.washingtonpost.com/realestate...story.html
I admit up till reading his article I also was understanding the homeowners policy died.
What I suspect is someone filed a claim in the name of the RLT before revocation. The title company then said hang on a tick, who are you? Claim denied. Then I bet they revoked the trust, and the Title company said claim was filed too late. Claim denied.
In this thread I am not trying to prove RLT conversions do not kill the Homeowner's policy. However, you help to prove the point that the document is alive after closing.
It is alive and gives the buyer of the policy rights if the title becomes unmarketable in the future.
Now: Let's look at me. I have a $ 1/4 mm line of credit on my home. It is public record. Wells Fargo provided me that LOC. If they didn't, instead of being able to utilize capital invested in my home to buy a sailboat and sail across the Pacific I would have been locked into Puna.
Sophisticated buyers look at 2% and 3% money from the bank in the form of a LOC when deciding to buy. WF will not offer a new buyer of my home a LOC. Yet, my home is no where near the flow, and both I and WF are insured.
Nothing physically happened to my home. It was an attack on my title that has caused me harm.
The ability for a reasonable new buyer determines if Title has been damaged.
To prove damage to my title all I need do is show Wells Fargo continues to offer LOC on homes in other parts of Hawaii but they have red-lined my entire neighborhood
Former Puna Beach Resident
Now sailing in SE Asia
HOT BuOYS Sailing
Now sailing in SE Asia
HOT BuOYS Sailing