Profile picture for baileycaro

Problem with refi because condo listed in realty trust. solution??

All details of refi passed muster, then denied because of realty trust.  What is best way to handle this?
  • November 27 2009 - Exeter
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

Answers (4)

Normally the lender would tell you what the issue was and suggest ways to resolve the problem.
If you were trying to refiance the property you currently reside in or a 2nd home then the problem was probably how the trust was setup.  
Most comforming loans don't allow an investment property to be held in trust.  But you could take it out of trust and do a refiance.  
  

  • November 30 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for nealadler
Some lender's may not make a loan to a trust, only an individual.  Some lenders do make loans to a trust.  Some lenders require the property to be removed from the trust and the borrower puts the property back in the trust after the loan closes.  However, there can be legal issues with the last scenario and if something happens to the borrower before the property goes back in the trust the lender may have some liability issues.  This has been my experience when I was involved in mortgages some years back.  I do not give legal advice as I am not an attorney.  Having said that your best bet is to find an attorney that is familiar with real estate trusts and can advise you accordingly.
  • November 27 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Ofe Polack
Hi since I am not an attorney, I cannot give you advice on a matter that is probably legal and/or financial.

I suggest that you contact a realestate attorney, not just a regular attorney, but a realestate attorney.  If you do not know which way to go try contacting a settlement company they may also be able to offer advice.
  • November 27 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Depending on your LTV their are portfolio lenders that will lend on Trusts.

Otherwise the best solution is take it out of a Trust and put it back when your new loan has closed.

THIS IS NOT LEGAL ADVICE. FOR LEGAL ADVICE CONSULT WITH AN ATTORNEY.
  • November 27 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.