417,221
Who or how are they planning to transfer title? A Living Trust does not trigger but a LLC or Corp Entity does. Loans for the past 10 years funded by mine government (Fannie, Freddie, FHA USDA...) are not assumable, not even to a family member.
Family transfer deed may trigger the lender and here is how: They look at the fire insurance bill annually and if there is a late payment they will pull the title. Call me and I can address your exact situation
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Debra Leisek
Homer, AK
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Sandy Padula & Norm Pa...
, CA
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Evelina Tsigelnitskaya
Sunny Isles Beach, FL
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Debe Maxwell, CRS
Charlotte, NC
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Diana Dahlberg
Pleasant Prairie, WI
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Pete Xavier
Pacific Palisades, CA
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Lyn Sims
Schaumburg, IL
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Bob "RealMan" Timm
Minot, ND
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Fred Griffin Florida R...
Tallahassee, FL
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Michael Jacobs
Pasadena, CA
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Nina Hollander, Broker
Charlotte, NC
4,572,364
Hmm---parked, reading and learning.
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Richard Weeks
Dallas, TX
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Evelina Tsigelnitskaya
Sunny Isles Beach, FL
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Valeria Mola
Sunny Isles Beach, FL
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Debe Maxwell, CRS
Charlotte, NC
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Diana Dahlberg
Pleasant Prairie, WI
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Bob "RealMan" Timm
Minot, ND
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Fred Griffin Florida R...
Tallahassee, FL
5,104,931
I'd still be talking to an attorney. Do you need one here in NC?
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Richard Weeks
Dallas, TX
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Evelina Tsigelnitskaya
Sunny Isles Beach, FL
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Valeria Mola
Sunny Isles Beach, FL
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Diana Dahlberg
Pleasant Prairie, WI
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Bob "RealMan" Timm
Minot, ND
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Fred Griffin Florida R...
Tallahassee, FL
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Michael Jacobs
Pasadena, CA
787,902
Fred:
I've litigated three cases in the last 5 years involving the due-on-sale clause. I pulled the research (below) from a case file, current as of 2015. As of 2015 at least, the relevant exemption (highlighted on your list) has not changed. I'd be surprised if this has since changed. I believe you're on the right track.
~~~~~~~~~~~~~~~
Under the Garn–St Germain Act and its implementing regulations, a mortgage lender, among other restrictions, “shall not exercise its option pursuant to a due-on-sale clause upon ... [a] transfer to a relative resulting from the death of the borrower.” 12 C.F.R. § 591.5(b)(1)(v)(A) (implementing 12 U.S.C. § 1701j–3(d)(5)) [emphasis added]
~~~~~~~~~
Disclaimer: This information is designed for instructional purposes only. It should not be relied upon as a response to a specific question. Local paid counsel should be consulted for a legal opinion tailored to your individual circumstances.
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Anna "Banana" Kruchten
Phoenix, AZ
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Bob "RealMan" Timm
Minot, ND
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Evelina Tsigelnitskaya
Sunny Isles Beach, FL
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Valeria Mola
Sunny Isles Beach, FL
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Debe Maxwell, CRS
Charlotte, NC
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Fred Griffin Florida R...
Tallahassee, FL
6,393,609
Caroline know much more about this than I do.
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Evelina Tsigelnitskaya
Sunny Isles Beach, FL
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Valeria Mola
Sunny Isles Beach, FL
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Debe Maxwell, CRS
Charlotte, NC
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Diana Dahlberg
Pleasant Prairie, WI
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Fred Griffin Florida R...
Tallahassee, FL
-
Bob "RealMan" Timm
Minot, ND
5,216,509
Read the due on sale clause of the mortgage. Most are standard for the past several years so transfers in the secondary market can be done more easily. That said it is probably very narrow in scope and enforceable. One way may be to seek permission from the lender to add her name to the loan and title. Before doing so, seek counsel!
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Evelina Tsigelnitskaya
Sunny Isles Beach, FL
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Valeria Mola
Sunny Isles Beach, FL
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Debe Maxwell, CRS
Charlotte, NC
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Diana Dahlberg
Pleasant Prairie, WI
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Bob "RealMan" Timm
Minot, ND
-
Fred Griffin Florida R...
Tallahassee, FL
5,583,278
maybe there's an attorney who will respond.... risky business relying on answers from anyone who is not an attorney....
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Evelina Tsigelnitskaya
Sunny Isles Beach, FL
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Valeria Mola
Sunny Isles Beach, FL
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Debe Maxwell, CRS
Charlotte, NC
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Diana Dahlberg
Pleasant Prairie, WI
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Bob "RealMan" Timm
Minot, ND
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Fred Griffin Florida R...
Tallahassee, FL
2,071,025
Great question and I don't know the answer.
Will read below.
Thank you, Fred.
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Bob "RealMan" Timm
Minot, ND
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Fred Griffin Florida R...
Tallahassee, FL
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Evelina Tsigelnitskaya
Sunny Isles Beach, FL
-
Valeria Mola
Sunny Isles Beach, FL
-
Debe Maxwell, CRS
Charlotte, NC
3,988,007
I do know that exemption (#5) is still being used and have encountered it in my area over the last few years.
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Bob "RealMan" Timm
Minot, ND
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Fred Griffin Florida R...
Tallahassee, FL
-
Evelina Tsigelnitskaya
Sunny Isles Beach, FL
-
Valeria Mola
Sunny Isles Beach, FL
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Debe Maxwell, CRS
Charlotte, NC
1,844,301
There are no exemptions as far as I know. Or, they're are but totally remote.
I read some of those exceptions & that doesn't seem valid any longer. Actually, never heard of a few of them like a Federal Savings & Loan can't prohibit assumption but they all do.
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Evelina Tsigelnitskaya
Sunny Isles Beach, FL
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Debe Maxwell, CRS
Charlotte, NC
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Diana Dahlberg
Pleasant Prairie, WI
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Bob "RealMan" Timm
Minot, ND
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Fred Griffin Florida R...
Tallahassee, FL
2,390,620
No idea but I'd also like to know the answer Fred Griffin .
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Evelina Tsigelnitskaya
Sunny Isles Beach, FL
-
Valeria Mola
Sunny Isles Beach, FL
-
Debe Maxwell, CRS
Charlotte, NC
-
Diana Dahlberg
Pleasant Prairie, WI
-
Fred Griffin Florida R...
Tallahassee, FL
5,772,575
Learning...
-
Evelina Tsigelnitskaya
Sunny Isles Beach, FL
-
Valeria Mola
Sunny Isles Beach, FL
-
Diana Dahlberg
Pleasant Prairie, WI
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Bob "RealMan" Timm
Minot, ND
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Fred Griffin Florida R...
Tallahassee, FL
1,598,452
Agree, interesting question and will learn from the answers.
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Bob "RealMan" Timm
Minot, ND
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Fred Griffin Florida R...
Tallahassee, FL
-
Evelina Tsigelnitskaya
Sunny Isles Beach, FL
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Valeria Mola
Sunny Isles Beach, FL
5,230,119
Sweet Caroline Gerardo to offer an explanation and an offer to help as well as Brian L. Sirota, Esq. Good luck, Fred.
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Kathleen Daniels, Prob...
San Jose, CA
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Bob "RealMan" Timm
Minot, ND
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Fred Griffin Florida R...
Tallahassee, FL
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Evelina Tsigelnitskaya
Sunny Isles Beach, FL
679,404
Over my pay range ... parked, reading and learning.
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Evelina Tsigelnitskaya
Sunny Isles Beach, FL
-
Debe Maxwell, CRS
Charlotte, NC
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Fred Griffin Florida R...
Tallahassee, FL
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Bob "RealMan" Timm
Minot, ND
2,684,109
These exemptions are listed in the Garn-St. Germain Depository Institutions Act of 1982:
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Evelina Tsigelnitskaya
Sunny Isles Beach, FL
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Debe Maxwell, CRS
Charlotte, NC
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Bob "RealMan" Timm
Minot, ND
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Lyn Sims
Schaumburg, IL
3,345,091
Family members are not exceptions to the need to seek legal and/or tax advice Fred Griffin -
Having read your comment to Caroline Gerardo ... I'd consider estate planning documents which are likely different in California than in another state. I am happy to discuss how this works in California ... with no guarantee that is how it will work in Florida or another state. I know Texas and Alabama are vastly different than CA. I know because I have facilitated helping others get estate plan documents in place for one of their family members.
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John Juarez
Fremont, CA
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Lyn Sims
Schaumburg, IL
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Fred Griffin Florida R...
Tallahassee, FL
1,543,823
Let's ask Jason E. Gordon
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Bob "RealMan" Timm
Minot, ND
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Fred Griffin Florida R...
Tallahassee, FL
-
Debe Maxwell, CRS
Charlotte, NC
1,239,901
No clue...
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Bob "RealMan" Timm
Minot, ND
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Valeria Mola
Sunny Isles Beach, FL
-
Fred Griffin Florida R...
Tallahassee, FL
7,836,419
???
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Diana Dahlberg
Pleasant Prairie, WI
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Bob "RealMan" Timm
Minot, ND
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Fred Griffin Florida R...
Tallahassee, FL
2,220,654
Parked and reading...
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Fred Griffin Florida R...
Tallahassee, FL
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Anthony Acosta - ALLAT...
Atlanta, GA
465,398
Fred, yes you can rely on that list, as long as the family member is getting the property through the estate of the deceased owner, (probate/rights of survivorship/etc.)
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Lyn Sims
Schaumburg, IL
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Fred Griffin Florida R...
Tallahassee, FL
1,153,794
The clause should be spelled out in the mortgage. That's where I would begin and I doubt that Garn-St, Germain will hold water today.
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Bob "RealMan" Timm
Minot, ND
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Fred Griffin Florida R...
Tallahassee, FL
4,434,127
No idea.
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Bob "RealMan" Timm
Minot, ND
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Fred Griffin Florida R...
Tallahassee, FL
3,416,038
Most often is it is owner occupied and they rent it out. OR if they do not mantain the home as it goes in severe direpair. IF they say store 10,000 tires in their yard or sell it but take a mortgage while still having a mortgage.
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Bob "RealMan" Timm
Minot, ND
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Fred Griffin Florida R...
Tallahassee, FL
4,883,242
Looks like Caroline Gerardo has your answer.
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Bob "RealMan" Timm
Minot, ND
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Fred Griffin Florida R...
Tallahassee, FL
5,049,477
Sorry but I still think it's a legal question, or perhaps our lenders here can respond.
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Bob "RealMan" Timm
Minot, ND
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Fred Griffin Florida R...
Tallahassee, FL
921,504
Laws are in place that protect active members of the armed forces and reserves from eviction. They are evicted.
The action of the banks and sheriff will long outlive the latency of the judicial system to correct egregious behavior of lenders.
The one who prevails will be the one who owns the best legal representation.
During the 'smoke detector chirping' season, keeping the lenders in the dark was the best way to move distressed real estate.
Being 'right' doesn't always work to the benefit of the ordinary citizen. But your options can only be to advise them to hire the best legal advise they can. The vulnerable and poor need to know what groups will advocate on their behalf. Often that is spelled MEDIA.
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Fred Griffin Florida R...
Tallahassee, FL
5,868,554
699,874
In Caligornia, it used to be one could assume the loan. That changed with the Wallenkamp v. BofA lawsuit in the mid-70s. Now, a loan can be transferable, with approval of the lender. Kind of only fair is the interest rate is extremely low. Haven't seen one in years, at least one that was a fixed rate.
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Fred Griffin Florida R...
Tallahassee, FL
2,182,552
Let me know the answer - I teach a 30 hr. RE Finance Class
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Fred Griffin Florida R...
Tallahassee, FL
3,986,258
4,936,716
883,732
I dont know the answers to this but I sure wish them both the very best.
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Fred Griffin Florida R...
Tallahassee, FL
1,311,397
You mention that the family is meeting with an attorney which is what I recommend, Fred Griffin. Proper estate planning can put there mind at ease.
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Fred Griffin Florida R...
Tallahassee, FL
1,374,473
My advice would always be to seek the services of an Attorney.
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Fred Griffin Florida R...
Tallahassee, FL
1,502,998
That I don't know. Maybe John Meussner can help?
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Fred Griffin Florida R...
Tallahassee, FL
634,531
First & foremost, I recommend consulting an Estate Planning Attorney for official legal advice on this matter. From an industry level, I have found that Lenders do not enforce the DOS Clause that you have highlighted as long as you continue to make on-time monthly mortgage payments. More often than not, the company "servicing" the loan is simply focused on receiving/processing timely payments. Perhaps you can contact the Legal Department of the Mortgage Servicer and proactively initiate a "what if this person dies" conversation with them (to ascertain their protocols). Generally speaking, Lenders are not interested in disrupting a performing asset (i.e. a timely paid loan on their books) if they don't need to.
Thank you for looping me into this conversation Thomas J. Nelson, Realtor, ePRO, CRS, RCS-D
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Fred Griffin Florida R...
Tallahassee, FL
1,725,996
Lenders still try to work around this act with acceleration clauses and alienation clauses in loan docs. And Caroline Gerardo gave perfect examples where government entities exempt themselves from the laws they should be controlled by.
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Fred Griffin Florida R...
Tallahassee, FL
4,800,082