Need to change from Successor Trustee to Executor?

[floridassd]

What is the name of your state (only U.S. law)? Florida

Hello,
I am helping my mother make an offer on a property. The offer is a short sale. The property is owned by a trust due to the owner being deceased. The trust is willing to release the property and does not need to receive any money from the sale.
In order to submit a short sale offer, I understand that the bank needs several items, including:
A letter of approval from the owner that the bank can discuss the loan with the agent (purchaser)
A letter stating that the owner does not expect to receive any money from the sale.

The problem that we are having is that the bank will not accept the letters from the person in charge (successor trustee) of the trust because her title is not "executor"
Is there such a thing as an executor in a trust?
Does the Successor Trustee need to be made the Executor via the courts? Is this hard to accomplish?
Or can the Successor Trustee move forward with the sale of the property?
Thanks in advance,
Noah Davis

 

[anteater]

Apparently, the bank personnel are being obtuse. At what level is the contact at the bank? Ask to go up the food chain.

No, a trust does not have an executor. It has a trustee. And, if the property is in the trust, then the trustee administers it.

A probate estate is administered by an executor - although, I believe Florida uses the term personal representative. Even if the trustee opened probate and was appointed by the court as personal representative, that would not do any good because the property is not part of the probate estate; it is part of the trust.

 

[justalayman]

The property is owned by a trust due to the owner being deceased.

In short, the owner is not deceased because the owner is the trust, not the original trustee/creator/grantor.

 

[nextwife]

Who is the BORROWER?

 

[floridassd]

WHo is the borrower?

The original borrower was the deceased. Now the trust controls the property and is not making the payments. Foreclosure looms and my parents want to buy on a short sale but the bank wont accept the paperwork because of the "executor" issue...

 

[anteater]

The original borrower was the deceased. Now the trust controls the property and is not making the payments. Foreclosure looms and my parents want to buy on a short sale but the bank wont accept the paperwork because of the "executor" issue...

So, your parents are getting involved with the lender because the trustee is just sitting on his/her behind? (I suspect that is what nextwife was getting to.)

All I can think of is to reiterate what I said before... If the contact at the lender can't understand that the property is part of a trust (which has a trustee) and is not part of a probate estate (which would have an executor/personal representative), then ask to go up the food chain at the lender.

 

[Stephen1]

Apparently, the bank personnel are being obtuse. At what level is the contact at the bank? Ask to go up the food chain.

No, a trust does not have an executor. It has a trustee. And, if the property is in the trust, then the trustee administers it.

A probate estate is administered by an executor - although, I believe Florida uses the term personal representative. Even if the trustee opened probate and was appointed by the court as personal representative, that would not do any good because the property is not part of the probate estate; it is part of the trust.

My experience w/banks is that they are obtuse when it comes to wills and the such. With the court issued Letters Testamentary in my hand naming me as personal representative I had banks refuse to allow me to access safe deposit boxes of close bank accounts. They even, supposedly, called their legal department before denying me access. My attorney said this is not uncommon.