Orange County California

Trust Attorneys


After creating a trust, many people choose to move their real estate into the trust as part of the estate planning and trust funding process. Trusts are allowed to hold title to real estate in many cases. Later on, the trustees of the trust may find themselves in need of liquidity during the estate planning implementation process and need to obtain a mortgage, equity line, or other type of loan against the real estate held in trust.

5 Things the Lender Is Looking for When Granting a Loan on Trust Real Estate

Fortunately, in many cases, trustees of a trust can obtain a mortgage against trust property. Before issuing the loan, the lender will review certain important information. This may include the following:

  1. Reviewing the trust instrument
  2. Confirming the identity of the grantors and trustees of the trust
  3. Verifying that the trust grants the trustees the power to borrow money and pledge and encumber trust assets
  4. Obtaining a trustee’s certificate that recites key terms of the trust and confirms the trustees’ authority to enter into the loan
  5. Confirming that the property is owned by the trust by reviewing the recorded deed

Trustees seeking to obtain a loan against trust assets should first consult with a knowledgeable trust administration attorney, as taking action without proper authority may result in liability or harm to the assets of the trust. We are here to help guide you through this process. We encourage you to check out the positive feedback on our client testimonials page today.

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