Borrowing against Property owened/held in a California Bypass Trust.
Get Legal Help Today
Compare Quotes From Top Companies and Save
Secured with SHA-256 Encryption
Borrowing against Property owened/held in a California Bypass Trust.
I am one of the beneficiaries of a California By-Pass trust, my Mother is still alive. There is property in Texas fully paid for and held in the trust. I would like to borrow against it for a down payment on a house in California as a first time home buyer, can this be done?
Asked on July 1, 2009 under Real Estate Law, California
Answers:
Neal Rimer / Neal M. Rimer, Esquire
Answered 14 years ago | Contributor
Generally, only an "owner" can borrow money secured with real property. You are not the owner.. the Trustee of the trust is the owner for the benefit of the beneficiaries... of which you are one.
If you want to borrow money from the Trustee, you should be able to do that. Just ask. It is usually up to the Trustee to decide if they desire to make a loan to you, whether secured or unsecured.
The issue is not that the property in Texas is free and clear of liens, the issue is dealing with the desire of the Trustee to be a lender to you.
IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.