Legal Question in Banking Law in California

A husband and wife in california were the trustors of their family trust. Apparently, they took out a loan in 2008 and county records show them being the grantors and JP Morgan chase the grantee. Deed of trust.

In 2012 a document was sent to their home titled "subsitution of trustee and full reconveyance"

It states that the husband and wife were the original trustors of the deed of trust and that chase being the present beneficiary of that deed of trust desires to subsitute a new trustee for this deed of trust. Subsitutes itself as the new trustee and reconvey without warranty to the persons legally entitled to all estate now held by it under said deed of trust.

This document was requested by Nationwide title clearing and requested the document when recorded be sent to the husband (trustor) The document is Dated may 29 2012. The document was prepared in Palm Harbor Florida. Signed by a vice president of chase who apparently appeared before a notary in Louisiana on 5/29/2012. It was recorded on 6/18/2012 in California and mailed to the husband by name who they know passed away in 2009.

Is this situation normal? What would cause Chase to initiate this and they say they are entitle to by being the beneficiary. The husband died in 2009 but the wife is still here and the only loan she has is with another bank. Why does a transaction in California involve so many other states. Does this mean that chase controls their family trust? There is no current loans with them. There was in the past but it was paid off before the husband passed away.


Asked on 9/01/13, 5:41 am

1 Answer from Attorneys

You can relax. The document is the standard form for RELEASING a mortgage from property. It is confirmation that Chase considers its loan paid off and has released its lien. In California we technically don't use mortgages; we use deeds of trust. They are nearly but not quite exactly the same and have NOTHING to do with family trusts.

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Answered on 9/01/13, 9:04 am


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