My father has Alzheimer's and dementia and I hold his power of attorney. He has an adjustable interest equity line of credit of $73,000 on his home that is valued between $360,000 and $400,000. The holder of this loan said that I cannot change it to a fixed rate or borrow any additional money to make repairs because the home is currently in a living trust and was originally taken as a single owner.
I am the sole heir if I was to lose my father and I have excellent credit. However I don't want to have a loan in my name without an asset to back it up. Is there any way I can get around these problems?
Contact the bank to ask whether it would consider refinancing the home equity line of credit with the knowledge that the property is held in a living trust. It will probably be necessary for you to assume the trusteeship for the trust, if you haven't already done so. Given your father's condition, it's unlikely he can act as trustee.
You may need to talk with the attorney who helped draw up the trust to get details ironed out. If the bank is unwilling to refinance, try a few other lenders in your area. Be sure to describe exactly the situation for each lender, to avoid getting to the closing and being blindsided at the last minute. Finally, make it clear that you are not planning to sign as a co-obligor if the refinancing is possible.
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Contact the bank to ask whether it would consider refinancing the home equity line of credit with the knowledge that the property is held in a living trust. It will probably be necessary for you to assume the trusteeship for the 