Can we refinance a second mortgage in the name of a trust?

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Please only people with Title COmpany information answer this question. I asked my bank, and they could not answer my question. Here is the situation.

The house we live in was owned my my mother in law, and she had a second mortgage taken out on the house of $ 50,000 (that is all that is owed on the house) Approx value of the house is $ 400,000+.

She passed and the house went into the name of the trust with 3 siblings.

The $ 50,000 loan was a variable interest loan, and is now skyrocketing.

Can we get a mortgage loan for the $ 50,000 and keep the house in the name of the trust (with all 3 siblings still on the trust).?

Can we keep the property in a trust?

What steps must we take to do this (obviously all 3 members on the trust have to sign).

Thanks in advance.

Real Estate agents are so hip with the lingo

5 Comments
  1. Reply
    Searchlight Crusade
    February 5, 2011 at 1:02 am

    In order to qualify for the loan, the trust has to have a credit history and source of income. Well, trusts can have a source of income (rent, in this case), but it’s rare that they have a credit history.

    The way most folks have to do this is temporarily quitclaim it to the folks who qualify for the mortgage, them quitclaim it back to the trust, who agrees to be responsible to them for the payments, loan balance, indemnities, etcetera.

    Another way is for the people to guarantee repayment, but this is complex and may result in higher rates than the first way..

    Either way, there are tax and credit implications. Talk to an accountant about the one, and ask your loan officer about the second. If the loan officer is clueless, run “Cosigning Mortgages” through a search engine, but I wouldn’t trust a clueless loan officer.

  2. Reply
    don_flickr
    February 5, 2011 at 1:57 am

    Gross.

  3. Reply
    allaboutgeorge
    February 5, 2011 at 2:12 am

    Could’ve been worse. "New looks … are dope/fresh/ill/stoopid!"

  4. Reply
    cafenut
    February 5, 2011 at 2:17 am

    Haha, George.

  5. Reply
    rmod
    February 5, 2011 at 3:08 am

    Truely interesting!

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