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cchung1263 · Joined: 31 Aug 2010 Posts: 3 1.63 Dollars($)

My widowed mom wants to refi her home to take advantage of the low interest rate and a question came up with respect that in the event of her passing, can the loan be transferable to one of her children? Can a living trust accommodate this? Does adding a sibling on the deed/loan impact LTV and credit score? Any suggestions?

adonis · Posted: Wed Sep 01, 2010 12:36 am Post subject:

Welcome cchung,

After your mother's death, you or your siblings will be able to get the property and the loan transferred in your names. The loan can be transferred by refinancing it. If the property is in the living trust, then you will have to remove the property from the living trust and then refinance the loan.

cchung1263 · Joined: 31 Aug 2010 Posts: 3 1.63 Dollars($)

Thank you for your assistance. Can I ask for clarification on one point? I've read at "http://www.legalzoom.com/living-trusts-faq/owe-money-property-living- trust.html" that upon placing the house in a living trust, the beneficiary will become responsible for that debt when he or she receives the property from the trust. So can a loan in a living trust remain where we don't have to refinance? Thanks again.

[Link deactivated as per forum rules. Thanks.]

smithsussane · Posted: Thu Sep 02, 2010 1:13 am Post subject:

Hi cchung!

Welcome to forums!

The mortgage debt does not automatically transfer in the name of the beneficiary. Unless the beneficiary refinances the mortgage, he or she doesn't become liable for the mortgage debt though the property is in the living trust.

Feel free to ask if you've further queries.

Sussane

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Can a loan be transferable upon death?