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December 29, 2023 at 9:13 pm #29002Geoff MassanekModeratorDecember 29, 2023 at 9:16 pm #29011Geoff MassanekModerator
It is possible to put your mortgaged home in a living trust and can benefit you in several ways. You can avoid probate, hold control over how you want the property to be distributed upon your death, and provide security from creditors.
To place a mortgaged property into a trust, the grantor must sign a warranty or quitclaim deed from the current owners to the trust. The deed would name the trust as the grantee and work like any other property transfer. After the mortgaged property is transferred to a living trust, the borrower still holds the responsibility to pay off the mortgage. The exception being if the trust requires the mortgage to be paid off before the transfer or distribution of the asset.
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