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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] i understand both sides Posted by hard money lender on April 17, 2008 at 7:20 PM In Reply to: Lenders not lending to trusts? posted by David on April 16, 2008 at 1:41 PM as an owner, holding property in trust, gives one privacy, and the ability to have a beneficiary. but as a hard money lender, i wont lend to a trust, either. and this is not because i dont understand them, but rather because i do. for most banks, they dont even understand them - certainly not the loan agent. a well-written trust should have a clause in it that states something like the following : that anyone doing business with the trustee is not liable for what the trustee does with the funds received. but that is a well-written trust. and then it is actually the beneficiaries who have the real say. and so what happens when the benes and the trustee get into a real legal situation. the bottom line, for me - is that there are way too many loans that are not in trust, that i simply dont need to consider ones that are. and in today's economy, i suspect that most traditional lenders feel pretty much the same. this is one good thing about a title holding trust - since it only contains real estate instructions, it is shorter than a full living trust. and the shorter the better, if you are asking a lender for some money. the lender is probably much more apt to wade thru a 5-page document, than a 50 page document. one thing that most people dont know is that there are certain default conditions with a trust, unless specified otherwise. i dont recall just what they are, but it is part of basic trust law. lenders simply dont want to hire lawyers to okay their loans, unless absolutely needed. and then even lawyers arent always correct. i had a major bank tell me something that their lawyers told them, which was incorrect. she assumed i was just a regular customer and would be intimidated, SIMPLY BECAUSE A LAWYER SAID SO. instead, i told her that her lawyer was wrong, and i would simply love to tell that to his face directly, if she wanted to give me the chance. of course, i never got the chance. when i told her why the lawyer was wrong, and supplied her with evidence - she simply just said that it was the policy of her bank. Follow Ups: Re: i understand both sides CC in OC 9:53 AM, 04/19/08 (4) Re: i understand both sides hard money lender 6:25 PM, 04/19/08 (3) Not really. CC in OC 6:58 PM, 04/19/08 (2) Re: Not really. hard money lender 7:13 PM, 04/19/08 (1) Have it your way. CC in OC 12:20 AM, 04/20/08 (0) Post a Followup: Name : E-Mail : Subject : Comments: : as an owner, holding property in trust, gives one privacy, and the ability to have a beneficiary. : but as a hard money lender, i wont lend to a trust, either. and this is not because i dont understand them, but rather because i do. : for most banks, they dont even understand them - certainly not the loan agent. : a well-written trust should have a clause in it that states something like the following : : that anyone doing business with the trustee is not liable for what the trustee does with the funds received. : but that is a well-written trust. and then it is actually the beneficiaries who have the real say. : and so what happens when the benes and the trustee get into a real legal situation. : the bottom line, for me - is that there are way too many loans that are not in trust, that i simply dont need to consider ones that are. : and in today's economy, i suspect that most traditional lenders feel pretty much the same. : this is one good thing about a title holding trust - since it only contains real estate instructions, it is shorter than a full living trust. : and the shorter the better, if you are asking a lender for some money. : the lender is probably much more apt to wade thru a 5-page document, than a 50 page document. : one thing that most people dont know is that there are certain default conditions with a trust, unless specified otherwise. : i dont recall just what they are, but it is part of basic trust law. : lenders simply dont want to hire lawyers to okay their loans, unless absolutely needed. : and then even lawyers arent always correct. i had a major bank tell me something that their lawyers told them, which was incorrect. : she assumed i was just a regular customer and would be intimidated, SIMPLY BECAUSE A LAWYER SAID SO. : instead, i told her that her lawyer was wrong, and i would simply love to tell that to his face directly, if she wanted to give me the chance. : of course, i never got the chance. when i told her why the lawyer was wrong, and supplied her with evidence - she simply just said that it was the policy of her bank. [ 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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