House in trust, sells, now I want the escrow $s - Posted by Jim (TX)

Real Estate Investing
#1

Posted by Jim (TX) on December 17, 1999 at 07:50:12:

You can bet I won’t forget this one in the future. I have LeGrands info and I have Bronchick’s info. I do not recall seeing anything about a limited power of attorney (not to say it isn’t there).

I do have documentation assigning the escrow to me, but I do not have the power of attorney. Worst case, the bank sends the check to the seller and they keep it (I learn a $2,000 lesson). Better case, the bank sends the check to me in the sellers name and I at least have some control over the situation. Best case, the seller signs over the power of attorney and I side step my error.

Thanks for everyones help.

#2

House in trust, sells, now I want the escrow $s - Posted by Jim (TX)

Posted by Jim (TX) on December 16, 1999 at 12:24:44:

Bought a house from a seller using the “subject to” method. Put the house into a land trust to avoid the due on sale clause. I sent the bank a copy of the trust agreement, a copy of the recored warranty deed, and a letter from the seller stating I am now the trustee all future paperwork should be sent to my attention. I did some rehab work and got the property sold yesterday. But the bank is reluctant to send the checks to me.

They might send the checks to me but made out to the seller. Not good.

How do I handle this?

#3

Re: House in trust, sells, now I want the escrow $s - Posted by JPiper

Posted by JPiper on December 16, 1999 at 18:41:11:

I agree with Bud…the time to have addressed this issue was in the beginning. In my case I get a limited power of attorney, plus a form signed which assigns the escrow account to me.

I’m dubious you’ll ever persuade the lender to turn over escrowed funds.

I bet next time you’ll remember this step. Wasn’t that in your course? Which course was it?

JPiper

#4

Banks and title companies don’t want to be sued. - Posted by Bud Branstetter

Posted by Bud Branstetter on December 16, 1999 at 18:18:00:

That is why they are reluctant to refund escrow money. You should have had the seller sign a power of attorney letter that gave you the power to sign off checks for insurance proceeds and escrow refunds. You could try to get the sellers to sign off on such a letter now if you can find them. A letter to them from an attorney would probably get the money but I would try other ways first.

#5

Re: House in trust, sells, now I want the escrow $s - Posted by Debby in Houston

Posted by Debby in Houston on December 16, 1999 at 15:20:50:

I have similar situation. Recently got check in sellers’ names, so I returned it, with cover letter about it having been transferred to trust, enclosed warranty deed to trustee (Legrand’s), and request to re-issue it payable to trustee. No reply yet of course. Crossing my fingers. Won’t kill me not to get it, but sure hope I do. I’ll tell you how mine turns out if you keep me informed on your situation. (Lender is Homeside Lending, based in San Antonio). My email is vfried@flash.net