I ran accross a homeowner who said he wanted to put his home in a landtrust before but when he asked his lender about it he was told he needed their approval first. Why is that? Why would he need the lender’s approval to tansfer his property into his own trust?
Why would a Home Owner need their Lender’s Approval to create their own Revocable Living Trust? That’s what Garn-St. Germain was all about. As of 1982, you no longer need permission or can have your loan called due for doing Simple Estate Planning.
However, with a Commercial Property you may need to ask and there may be a small transfer fee required by the lender to do so. I’ve only known of one case where the lender of a multi-unit building asked for a fee to transfer title to a trustee. It was only a few hundred bucks.
Please obtain a copy of Garn St. Germanie – thoroughly read it, you will find all your answers in the document
However, remember the term “Cognitive Rigidity”. Even after reading GSGM, one can still be confused, as we have seen in other threads. Thats alright though, keep asking questions and you will most certainly get some great answers here on the NARS Board.