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Ask Barrister Your Own Question
Barrister
Barrister, Attorney
Category: Estate Law
Satisfied Customers: 36604
Experience:  16 yrs estate law, real estate. Wills/Trusts/Probate
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Quick question i want to put my son and his wife in living

Customer Question

quick question i want to put my son and his wife in living trust to borrow a loan for them i have 779-804 credit rating and a home worth 1.7m free and clear but my income is about 36k year they make 340k a year but credit of 660-690 and a home worth 1.1 m and owe 675.000 they took a hard money loan for 210.00 now would like to refinance to pay it off but are not qualifying needing a 720 credit and up in the works to fix this but not going fast enuff what is best way of getting this done and whatever i need to do i have full trust in both of them they dont need me they have stocks worth ,,,,,,, a lot
Submitted: 8 months ago.
Category: Estate Law
Expert:  Barrister replied 8 months ago.

Hello and welcome! My name is ***** ***** I am a licensed attorney who will try my very best to help with your situation or get you to someone who can. There may be a slight delay in my responses as I research statutes or ordinances and type out an answer or reply, but rest assured, I am working on your question.

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I am not quite sure I understand what you mean by ""i want to put my son and his wife in living trust to borrow a loan for them ""...

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You don't put a person in a living trust... you put assets in to a trust for later distribution to the beneficiaries..

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If you have minimal income, then it is going to be hard to take a loan out because the bank cares more about what you earn than what you own because they don't want to have to foreclose if you were to default on any loan. With your income, if you only had expenses of $500 a month, you would qualify for around $100,000 for an equity loan... So that would help, but still wouldn't cover the entire hard money loan...

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With $450K in equity in their home, and that kind of income, they should be able to refi the house or take out a home equity loan to pay off the hard money loan... It might not be the best interest rate, because of their credit rating, but it should still be less interest that they are paying for a hard money loan...

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You could transfer your house to them by deeding it over, and that would increase their asset ratio and possibly make them a better credit risk... but that is kind of a drastic action as they would then legally own your house..

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Let me know what you are talking about with a "living trust" and I can answer any further questions..

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thanks

Barrister