A number of our private money loan investors (lenders) hold their beneficial loan interests in their family trusts. We frequently need to sign servicing related documents on their behalf and as a result created a recordable “Limited Power of Attorney” to be executed with our Loan Servicing Agreement.
Recently, title companies began refusing to accept our “Limited Power of Attorneys” because they say that the power to execute a power of attorney on behalf of the trust is not being granted to the Trustee in the trust. Is such a power now generally incorporated in the newer trusts? If not, could we use a Durable Power of Attorney for our purposes or do the powers granted in a Trust Durable Power of Attorney only become applicable if the trustee is incapable of performing his or her functions? Any thoughts of what we can do if we can’t use a Durable Power of Attorney for our purposes