Tuesday, November 16, 2010 How to Get a Loan on Trust Property (Personal Home)
To Get a Refi on a Trust Property: Go ahead and let the bank know you'd like the new loan. They will do a title search on the house and they'll discover that it's legally owned by your trust. If they care, and some lenders don't, they'll tell you to take the house out of the trust to do the new loan. Ask them if they'll do that--most of the time they're happy to do this because it's a simple thing to record a deed transferring the house from the trust back to you and your wife as individuals, and they want to sell the new loan. If they won't do it, ask the person who put the house into the trust in the first place (probably a lawyer) to take it out for you. Then, after you get the new loan, make sure to put the house back into the trust. This is just like what you had to do to get the house out of the trust: this time you'll record a deed transferring the house from you as individuals to you as trustees of the trust. Again, the lender will usually do this for you at the end of the transaction, but make sure to check to make sure that they follow through. |