can the bank call in a /loan mortgage if I put my home in a living trust? my children are my beneficiaries?

will my children be protected by the gernain act of 1982 which excludes due on sale being inacted on mortgages when the home is left to children as the beneficiaries?

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3 reviews

  1. engineer50, February 16, 2011 3:59 am - can the bank call in a /loan mortgage if I put my home in a living trust? my children are my beneficiaries?

    You should consult a lawyer on this.

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  2. SuperCactus, February 16, 2011 4:05 am - can the bank call in a /loan mortgage if I put my home in a living trust? my children are my beneficiaries?

    I’ve done it with no problem. Some say you should notify the bank about what and why you are doing it. It did not.

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  3. Expert Realtor, February 16, 2011 4:53 am - can the bank call in a /loan mortgage if I put my home in a living trust? my children are my beneficiaries?

    No…living trust are done all day, every day in the mortgage business and is becoming more and more popular.

    A living trust does NOT relinguish your ownership or your rights…all that does is change the vesting of the property from you to your children and it does not have to go through probate.

    You still retain 100% control over the property and can take it out of the trust at any time without consulting anyone…..THAT is why the bank doesn’t care.

    If you refinance, the attorney takes the property out of the trust, you refinance, and puts it back into the trust, it’s done at closing and they are recorded in that order.

    The 1982 act that you are referring to doesn’t have anything to do with children inheriting a home.

    Keep in mind that if your estate doesn’t have the proceeds to pay off the home, the bank will foreclose, so provisions have to be made.

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