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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: Refinancing a Property Held in Trust Posted by RIck Harmon on March 15, 2002 at 4:44 PM In Reply to: Refinancing a Property Held in Trust posted by Gary C. on March 15, 2002 at 8:36 AM : Ward: : How do you refinance a property where the title is held in trust? The lender will place a deed of trust naming the borrower as the trustor. Will they record the deed of trust naming the trust as a trustor? I'd like to refi to improve the cash flow from my rental and pay off the underlying loan that I took 'subject to'. I have weighed the benefits of the anonymity maintained with the existing loan against the additional $400/mo cash flow from the lower interest refi and the cash flow wins. Your thoughts? : Gary In my experience, this is a drawback of using any form of trust entity to vest real property. It has to do with the conventional mortgage market, in particular, banks, thrifts and institutional lenders (i.e., Countrywide, etc.) sell loans to FannieMae and FreddieMac, who then own the loans but permit the originating lender to service (collect). These lenders will not lend to a non-natural person entity (trust) and consequently you are faced with either transferring and vesting individually to get a convenstional loan or obtaining a private money loan at subprime rates/terms. I'm very familiar with this because I own a mortgage company that only makes loans on probate and trust realty. We discovered this market niche over a dozen years ago. Of course, if you're planning to refi, why do you care about holding title individually long enough to get your new loan? Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward: : : How do you refinance a property where the title is held in trust? The lender will place a deed of trust naming the borrower as the trustor. Will they record the deed of trust naming the trust as a trustor? I'd like to refi to improve the cash flow from my rental and pay off the underlying loan that I took 'subject to'. I have weighed the benefits of the anonymity maintained with the existing loan against the additional $400/mo cash flow from the lower interest refi and the cash flow wins. Your thoughts? : : Gary : In my experience, this is a drawback of using any form of trust entity to vest real property. It has to do with the conventional mortgage market, in particular, banks, thrifts and institutional lenders (i.e., Countrywide, etc.) sell loans to FannieMae and FreddieMac, who then own the loans but permit the originating lender to service (collect). : These lenders will not lend to a non-natural person entity (trust) and consequently you are faced with either transferring and vesting individually to get a convenstional loan or obtaining a private money loan at subprime rates/terms. I'm very familiar with this because I own a mortgage company that only makes loans on probate and trust realty. : We discovered this market niche over a dozen years ago. Of course, if you're planning to refi, why do you care about holding title individually long enough to get your new loan? Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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