[quote=SK in CV]Not sure what a “personal trust” is, though technically, yeah, that’s probably all accurate. But as a practical matter, lenders don’t lend to trusts, except in very rare situations. Almost invariably, (even moreso with run-of-the-mill living trusts) the lender will insist title is held by individuals, not trusts, and the borrower are individuals, not trusts. So title is transferred out of a trust, into the name of the grantor, the loan is recorded, and then the property is transferred back into the trust.
Something to do with the near impossibility of successfully bringing collection actions against trusts. I only mention it here because these particular borrowers could be the exception. You gotta know someone or have some special influence for lenders to allow it. (I’m pretty sure that it’s not allowed for conforming loans.)[/quote]
Yes, CV, I understand what you are saying here. This is done all the time in escrow and is a mere formality. The various deeds are all prepared. At the time of signing/closing, the trustees will all appear and sign a quitclaim deed to themselves (as joint tenants or tenants in common), THEN sign the trust deed and note (as individuals), and THEN sign the quitclaim deed from themselves to their personal trust . . . in that order. It’s just an extra 2-pg filing fee. The title company will record them all at once, sequentially numbered in that order.
If the lender requires the ownership change BEFORE the day of funding, the trustees will all appear before a notary after receiving their commitment letter and sign a quitclaim deed from their personal trust to themselves. The lender will hold it until the time of funding/closing, at which time it will be recorded.
