Los Angeles, CA · Member since 2019 · 91 posts · 23 votes
My living trust is on my home's title. In the past, when I have refinanced, the property had to be taken out of the trust and then immediately put back into the trust. If I get a HELOC, will the same thing happen?
context: if the property is taken out of the trust, even if only to be put right back into it, that is considered a change of ownership. My home can only be exempted from the Los Angeles RSO (Rent Stabilization Ordinance) after it has not changed owners for 3 years.
My living trust is on my home's title. In the past, when I have refinanced, the property had to be taken out of the trust and then immediately put back into the trust. If I get a HELOC, will the same thing happen?
context: if the property is taken out of the trust, even if only to be put right back into it, that is considered a change of ownership. My home can only be exempted from the Los Angeles RSO (Rent Stabilization Ordinance) after it has not changed owners for 3 years.
FYI you can actually do a refinance without taking it out of the revocable living trust. You can (and perhaps should) close in the name of the trust for a vanilla refinance.
For the HELOC, it's up to the individual bank. Some will allow it to close in a trust, some will not. You have to ask.
Hi Chris! Generally you can get a loan on a property in a living revocable trust, the sticking point may be CA, as I know the lending laws in CA are different and more regulated than many other states. I'm also not sure about a HELOC specifically, as I've only seen total refinances, but I found this lender that is based in CA and looks like they have done loans for properties in a living trust. I am in no way affiliated with them, this is just an informational search that I kept book marked for this kind of scenario.
My living trust is on my home's title. In the past, when I have refinanced, the property had to be taken out of the trust and then immediately put back into the trust. If I get a HELOC, will the same thing happen?
context: if the property is taken out of the trust, even if only to be put right back into it, that is considered a change of ownership. My home can only be exempted from the Los Angeles RSO (Rent Stabilization Ordinance) after it has not changed owners for 3 years.
FYI you can actually do a refinance without taking it out of the revocable living trust. You can (and perhaps should) close in the name of the trust for a vanilla refinance.
For the HELOC, it's up to the individual bank. Some will allow it to close in a trust, some will not. You have to ask.
@Chris Morris, that is awesome that you were able to keep the property in the trust and get a HELOC with PNC. That bank offers nice flexibility with their HELOCs.
Yes, their HELOC is extremely flexible, and thus powerful. You can lock in portions of your principal at fixed rates, and then switch them back to variable when rates drop.