Legal Question in Wills and Trusts in Colorado

Living Trust

Can real estate be included in a living trust if there is a mortgage involved? If so, does the mortgage holder have to be notified before the property is included in the trust?


Asked on 12/08/05, 8:44 am

2 Answers from Attorneys

John Campbell Law Offices of John J. Campbell, P.C.

Re: Living Trust

Even real estate subject to a mortgage can be held in a living trust. However, the mortgage documents will undoubtedly contain a "due on sale" clause, which technically could result in the entire balance coming due upon transfer of the property. Because of this, it is usually a good idea to contact the mortgage holder to secure its consent to the transfer.

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Answered on 12/08/05, 9:28 am
Bernard Greenberg KOKISH & GOLDMANIS, P.C.

Re: Living Trust

You can transfer the real estate to a living trust, but must first obtain the consent of the mortgage company. You should obtain written consent from the mortgage company, which they should provide to you.

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Answered on 12/08/05, 3:45 pm


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