Trust owned property

[nvertrust any1]

What is the name of your state? Arizona

In 1999 I bought a house from my fathers trust. The trust held the mortgage.
Now trust needs to split so I have to refinance it. The problem is the trustee recorded the sales agreement with the title company but the deed remained in the name of Dad's trust. My brother is a co beneficiary. Now I'm the recorded owner but trustee does not want to convey the deed until she recieves a check. Loan offficer says the deed must be conveyed before hand in order to draw up the papers. Trustee is afraid that that will leave the trust open to possible loss. Anyone have any ideas that would make it possible for everyone to be happy? Any clue as to how we can arrange the actual closing so that trustee doesn't feel vulnerable and the title company and lender and buyer are feel comfortable with the transaction as well?

 

[MortgageGuru]

First of all, if you have already been quit claimed onto the property then there should be no problem with you refinancing it. Worst case scenario is that you buy the property from the Trust and have the Trust carry a privately held second and pay the closing costs. If you end up just having to buy it from the Trust then you will need the Trust to carry at least a 20% second. That way you can minimize the amount you would need at closing and the Trust would be satisfied.

 

[nvertrust any1]

trust must end! house must sell

I bought the house from the trust in 1999. I have around 60,000 in equity but I have to refinance so my bro can inherit. I'm working with finance co who says the deed must be released in order to draw up the financing papers. but trustee doesn't want to release the deed until she has a check in her hand. finance co cant write the check until the deed is released. Either way the trust has to split to pay each of us off. The house must sell in order to do this. Are you saying instead of refinancing to qit claim the house back to the trust and but it for the balance of bro's share? Thanks for the help.

 

[MortgageGuru]

No, that was worst case scenario. Have the trustee at closing. She won't get a check at closing unless it is done as an investment property. If it is your primary residence then she will have to wait until the loan funds to get her money.