Refinancing a property in an irrevocable trust

[Ari Bauer]

So, a client of mine bought a property with a conventional mortgage and Deeded the property into an irrevocable trust Now, after a number of years the lender caught on and is calling the loan. They did offer to allow him to transfer the deed back into his name and keep the loan, however due to his circumstances that is not possible. I understand that most lenders will not loan on a property in an irrevocable trust, and I am looking for help in finding one.

Does anyone have any ideas or suggestions to help him avoid the inevitable foreclosure if he doesn't payoff the loan?

[Tyler Mullen]

In all my years working as a trustee I never found what one would consider a conventional lender that would lend on an irrevocable trust (I assume this trust is for estate/Medicaid planning).

I suppose anything's possible in the world of private lending, but the rates will probably be much higher than conventional.

Which begs the question, "why the trust in the first place"?, if this is the trouble it's causing what are the benefits that outweigh?  I've seen many a trust sold to people that didn't really need it, like using a bazooka to kill a house fly.