using equity from small properties for downpayment

[recordsclerk]

I just depends on if you want to be landlord. If that is your preference, you should keep them. If not, then just sell. Since HLS is the expert, I don’t want to pretend I know everything about lending. From my limited experiences with lending, it seems like borrowing such small amounts on two properties, will result in too many fees to be worth it. If both properties appraise at 120K, you will only be able to pull out 90K. I’ve done this a few times, but usually pulling out 170K on a primary. It was worth it for what I was using the money on. Once was to buy another primary to avoid PMI.

[TexasLine]

[quote=svelte][quote=TexasLine][quote=svelte][quote=TexasLine]
You stated ” lots of info missing”. But honestly the true question is whether or not its best to pull out equity from my mothers Living Trust properties or simply sell them for profit and use these fund for the down payment.[/quote]

Hmmm…

[quote=HLS]
However,you have NO CLUE what suggestions I have for the OP, or the type of advice that I offer and I actually don’t have any until I know a lot more details.
[/quote]

…straight from a mortgage broker.[/quote]

Well than,…who should I talk to? What do you think?[/quote]

Didn’t HLS invite you to call him?[/quote]

Yes. And I did talk with him. He had lots of good info and was very helpful.

[CA renter]

You might want to consider consulting with an estate planning attorney and/or a good accountant. Personally, I’d do both just to make sure that all of your bases are covered.

[TexasLine]

Sadly, my mother passed away suddenly a few weeks ago.

None the less, and in a manner designed to remain unemotional about that fact, yet true to the housing market theme of piggington…I continue my quest for information.

Her passing turned a “revocable living trust” into an “irrevocable living trust”. I now have these two very small properties that I want to liquidate and apply to a downpayment for a San Diego single-family home.

Where do I place these funds to satisfy the terms of the trust. I literally have no idea how to transfer money from the sell of these small properties into the trust.

And I would like to transfer the “trustee” responsibilities away from the current trustee to myself. Forms, Documents, Attorneys, fees…

Any thoughts?

[CA renter]

I’m very sorry to hear about the passing of your mother, TexasLine.

As for the other questions, there are a lot of variables. Again, I would suggest that you talk to an estate attorney or a financial adviser/accountant who specializes in estate planning.

That being said, everything depends on who the trustee is (not sure that you can transfer rights/responsibilities away from current trustee if that’s not already written into the trust documents) and the beneficiaries of the estate.

Are the houses held in the trust already? If so, you just sell the homes and open bank accounts for the trust (bring trust documents to bank to do this), and deposit the funds into the account as you would a personal account. Banks do this all the time, so if you just bring the documents in, they will be able to set it all up.

If there are other beneficiaries, I would personally advise you to make sure their interests are taken care of, based on the directions in the trust, before buying your own house. Be careful about conflicts of interest, trustee responsibilities, etc. Make sure that the trustee, whether you or someone else, abides 100% by the directions laid out in the trust documents. If you’re not sure about some of the details in the trust, be sure to get legal advice. The trust might be able to pay for this advice, depending on the circumstances.

[Author]

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