Legal Question in Wills and Trusts in California

Depending on what the lenders think of the balance owed versus the value of the property, you may be able to find a lender who will loan to the trust, but most lenders will not.. They are fine with property being put in a revocable trust after the loan records, but not with making the loan to a trustee as trustee. This does not mean there is not some way to make your plan work to keep the property and refinance it with a more favorable loan. It does mean, however, that it will take some legal and financial maneuvering to do it, and it will have to start with a review of the trust to see what you can and cannot do under its terms. Since your mother is still alive, your best bet is to go back to the attorney who set up the trust, or another local trust attorney, discuss your objectives, and if necessary have some modifications made to the trust to make sure you can maximize the use of the asset once your mother passes.

If you are the sole trustee under the Trust, you don't need your siblings consent to exercise whatever rights may exist under the reverse mortgate. As Mr. McCormick suggests, however, you may find it difficult to find a lender to help you take out the reverse mortgage. You and your siblings may have to personally sign on, or at least guarantee, any new mortgage.

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