Real Estate Lending & Trusts
Answer by Randy Carey, BOL Guru Guru Bio
Question: When real estate is in the name of a trust and we qualified the borrowers based on their individual incomes, does the note need to be signed by the borrowers individually, or as individual and as trustees, or as trustees only?
Answer: If you qualified the loan based on the individual's incomes and you ever want to be able to get to the individuals for payment of the loan, you will have to obligate them on the transaction, either directly or through a guarantee. As for the best way to accomplish this, I suggest you follow the advice of your attorney.
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