Legal Question in Real Estate Law in Massachusetts

My wife and I own our residence in Massachusetts held by a Revocable Trust. Our application for a bank HELOC was denied because Massachusetts does not allow liens to be filed on real estate held in trusts. Is this true?


Asked on 9/26/17, 1:35 pm

2 Answers from Attorneys

No that is not true. Many Banks will not loan to Nominee Trusts, but there is no law that prohibits a bank from making a loan to a Revocable Trust which is normally used in estate planning. I know of no law prohibiting a bank make a loan against property held by a trustee.

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Answered on 9/27/17, 2:45 pm
Christopher Vaughn-Martel Charles River Law Partners, LLC

What your bank told you is not true. Many banks prefer not to lend on a property held in trust. Some banks will require that the property be taken out of the name of the trust before granting a loan. This is quite common. Still other banks will permit a loan to be granted on a property owned in trust. Get a second opinion or - better yet - get in touch with an experienced real estate attorney.

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Answered on 2/14/18, 9:08 am


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