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Foreclosure Forum |
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Re: A very doable transaction.In Reply to: A very doable transaction. posted by Ward-CA- on March 15, 2002 at 6:34 PM : : 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 : =•=•=•=•=•=•=•=•=•=•= : Gary, the trick to getting a loan made directly to your trust (I have 6 of them now) is to ask your lender for a “portfolio loan”, one which they’re going to keep in their portfolio rather than flipping into the secondary market (i.e. FNMA) for a quick profit. : Right now I’m using Wells Fargo’s equity line of credit on my no-owner occupied properties. They will lend 70% of fair market value with no points, no fees, no appraisal charge, nada and they waive the 1st year annual fee of $125. The loan is made for 15 years. : The beneficiary of the trust is the qualifying borrower and signs the promissory note. The trustee of the trust signs the deed of trust. : If you are in CA you might want to make your loan directly through my branch of Wells Fargo @ 619/543-0096 since they (Develyn Glover) are so familiar with the set-up. : Hope this helps. Will Wells Fargo or any other lender put a home equity line of credit (HELOC) on a home that I own in trust but the underlying loan is not in my name ('subject to' transaction)? The history on the underlying loan is that it was in the original debtor's BK plan. I've recently (2 weeks ago) reinstated the loan (Chase Manhattan). It's now current. Will the fact that it was in BK affect the ability for me to get a HELOC...especially, as you suggested, I will be signing the promissory note? Gary C. Follow Ups:
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