[WSBAPT] Client on mortgage, but not title

[Paul Grant]

Well, believe it or not, I was just poking around the St. Germain Act this
morning.... why?  Because attorneys are just that weird.

Look at US Code 1703j-3(d)(8) - a transfer into an inter vivos trust in
which the borrower is and remains a beneficiary and which does not relate
to a transfer of rights of occupancy in the property

If your client is "the borrower" but is not a beneficiary the transfer may
have offended the statute and the loan could trigger the due-on-sale
clause.  If you could convince the mortgagee to close the loan that may
also force a remortgage.

Obviously a long shot but look at the section to see if anything else fits
your situation.  Even the threat of asking the mortgagee to force a payment
in full may get the Trustee to respond, specifically if it comes from your
office.


Paul H. Grant - JD, LL.M

Planning with Purpose, Inc
Lynnwood, WA 98036
425-939-9948
www.planningwithpurposeinc.com

Estate Planning. Business Planning. Wealth Succession.

On Thu, Jun 2, 2016 at 2:10 PM, Adria Vondra <avondra75 at gmail.com> wrote:

> I have a PC who took out a mortgage loan for his aunt several years ago.
> Right before she died (5 years ago), he transferred title to her family
> trust at her request.  His uncle is trustee and PC is not a beneficiary.
> He never lived in the house and never has made any payments on the home nor
> did he make the down payment.  The trust makes all the payments.  His uncle
> is not cooperative at all.  So, basically, he is on the loan and not the
> title.  He wants to get off the loan so that he can qualify for his own
> home.  Does he have any legal recourse?  I don't know if he can force a
> sale since he is not on title.  The trustee will not cooperate to refinance
> and the client is concerned about his credit and has literally no
> communication with them since his aunt died.  Any ideas?
>
> --
> Adria Vondra
> Attorney at Law
> Vondra Law Firm, PLLC
> 15600 Redmond Way, Ste 201
> Redmond, WA  98052
> avondra at vondralawfirm.com
>
>
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