Welcome to the Real Estate Forum


The "ORIGINAL" Real Estate Social Network" SINCE 2005 and your #1 Resource for all things Real Estate


  •  »Over 35,000 Members
  •  » Answer Questions From "REAL" Buyers & Sellers
  •  »Ask Questions & Share Stories With Fellow Real Estate Professionals.
  •  »Read Articles & Blogs written by Real Estate Professionals.

...you have come to the right place!


YES! I want to register an account for free right now!


p.s.: For registered members YOUR FORUM NAME is free of ads

Results 1 to 2 of 2
  1. 12-24-2008, 10:27 AM #1
    mowedthelawn
    mowedthelawn is offline Renter
    Join Date
    May 2007
    Posts
    3

    Default Using Trust Money for a home mortgage (not in trust)

    I am a trustee on our family trust. Interest rates on CDs are falling and we do not want to trust anymore money with the banks right now. The Grantor (Mom) is also a Trustee. She wanted to lend me money from the trust to pay off my mortgage and refi with the trust money. The interest rate would be good for all concerned. I am looking at $130,000 loan from a home that is realistically appraised at $185,000 ...approx. 30% down. How if possible can we set up this loan for a 5 to 7 year balloon refi? My credit is excellent and I have an annuity and a full time job. What should we do to protect all involved? Any suggestions? We want everything legit as the trust will be reporting profits and I will be reporting interest paid.
    Thank you!
    Reply With Quote Reply With Quote
  2. 12-25-2008, 06:52 PM #2
    rickiing's Avatar
    rickiing
    rickiing is offline Renter
    Join Date
    Dec 2008
    Location
    Missouri
    Posts
    9

    Default www.rickiing.com

    First things first. I am assuming you have a CURRENT appraisal. If it is more than 3 months old, you need a new one. With the market changes, and depending on where you are located, it could be quite different than one that is 6 months to a year old. A current one woud be fair to the trust to be sure the value is there.

    You can, of course, amortize the loan over 15, 20, 25 years, or whatever is agreeable with all concerned with a balloon payment at a given point.
    An attorney should prepare your new deed, note, and deed of trust or mortgage depending on your state of residence. (Ask your attorney about putting the house into a separate trust.)

    Your accountant or tax attorney can set up reporting of income and interest paid for tax purposes.

    Good luck in the new year. Hope your housing market is good......


    Ricki A. Ing

    Broker/Agent
    Prudential Bridgeport Inc., REALTORS
    Consistent Top Producer
    Residential, Commercial Brokerage
    Top 5% of Prudential Agents Nationwide
    http://www.rickiing.com
    p.s. 'be kinder than necessary to everyone you meet..we are all fighting some kind of battle'
    Reply With Quote Reply With Quote
« Previous Thread | Next Thread »

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  

Forum Rules