[quote=FlyerInHi]So how would the son use his mom’s houses as collateral? If he owned the houses, he could. No?
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He doesn’t own the home. His mom is still alive and it’s her property. He is a beneficiary, and when his mom’s time passes, the percentage of ownership for those homes relative to his other 4 siblings also depends on what his mom’s trust says (as well as what sort of capital gains taxes that ends up getting passed, if any, since none of them will be owner occupied. Inheritance taxes will will most likely be $0 for them in this specific case)

Talking about what he can do if he owned those properties is a moot point because they aren’t his. They are his mom’s.

[quote]
My experience is if title is held in a trust, you first have to transfer the house to the individual, refinance, then quit claim to the trust.

That’s because lien priority is first come first served as far as recording is concerned.[/quote]

Every time I refinanced my properties held in a trust, I never had a problem because the title of the property was held in a trust. The only thing some lenders have done was made me fill out paperwork that would take it out of the trust and then another paperwork that would put it right back in. But both deed paperwork would be completed and done at the same time. It didn’t hinder the loan application or closing the loan. Just extra paperwork that were filed while closing escrow. Putting property in a corp is a complete different beast.