Also keep in mind that the banks concern is payments ultimately. The key is does your transfer trigger the “due on sale” clause in the mortgage. If it doesn’t, the banks opinion doesn’t matter-the mortgage gives the payor certain rights and freedoms also.
I’d tell you to ask an attorney cause you may get an answer quickly and it may be accurate. But (depending on your state) if you can access the laws governing mortgages (in your local law library and occasionally on the internet) generally and if trust tranfers trigger the “due on sale” specifically, you should be able to find out on your own. It’s your time.
Posted by dan fulbright on October 21, 2003 at 12:30:19:
can a bank kkeepyoufrom putting a house into a trust i asked this and never got an answeri know the internet is notperfect so so asking agin for my sister thanks
Posted by Randy (SD) on October 21, 2003 at 12:49:06:
The standard answer to your question is no a bank cannot prevent you from placing your real estate property in a trust. However your bank seems to have a reason for making that decision, so while it is generally not prohibited obviously your bank is preventing you from doing this. My question is how did you present this to the bank? More importantly why did you even tell the bank to begin with?
My suggestion is to simply inform the bank this is an estate planning step you are taking to protect the family assets, and ask them why they object.