[WSBAPT] Client on mortgage, but not title

[Marcus Fry]

No good deed goes unpunished.  I would be surprised if you get the bank to act by a phone call if the loan is being paid.  You may want to take a look at the Archdale v. O’Danne case out of Division 1.  Sorry I don’t have the cite and it is unpublished.

Marcus J. Fry
Lyon, Weigand & Gustafson, P.S.

Confidentiality: This e-mail transmission may contain information which is protected by attorney-client, work product and/or other privileges.  If you are not the intended recipient, you are hereby notified that any disclosure, or taking of any action in reliance on the contents, is strictly prohibited.  If you have received this transmission in error, please contact us immediately and return the e-mail to us by choosing Reply (or the corresponding function on your e-mail system) and then deleting the e-mail.

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Laird, Katherine
Sent: Thursday, June 02, 2016 3:50 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Client on mortgage, but not title

Curiosity got the cat. I just looked at the 12 USC 1703 St. Germain Act.  Assuming the mortgage has a due on sale (really, due on transfer) provision, the lender has the right to accelerate the mortgage as a result of an unauthorized transfer unless prohibited by law.  Some mortgages don’t have due on sale clauses (you will have to check).  Since the PC is not beneficiary of the Trust, the acceleration would not be in violation of federal law (that is what Paul’s email was referring to).
Good luck.  Hoe the mortgage has a due on sale clause.  Alert the bank to the ruse (your client transferred to a trust in which he is not a beneficiary) and even though the mortgage is current it violates the mortgage. Assuming the property has appreciated in value, the bank may be happy to try to foreclose.  This will force uncle to have to refi.  Your client will no longer be welcome at Thanksgiving Dinner.  A small price to pay.
k

Katherine Kramer Laird
CenturyPacific, LP
Suite 1680
1201 Third Avenue
Seattle, WA  98101
Ph. 206-757-8892/Mobile. 206-915-0109
Fax 206-757-7890
katherinelaird at centurypacificlp.com<mailto:katherinelaird at centurypacificlp.com>


From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Adria Vondra
Sent: Thursday, June 02, 2016 3:04 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Client on mortgage, but not title

Thanks! I'll look again at the Act!

On Jun 2, 2016, at 2:52 PM, Paul Grant <paulnnepa at gmail.com<mailto:paulnnepa at gmail.com>> wrote:
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<http://www.planningwithpurposeinc.com>

Estate Planning. Business Planning. Wealth Succession.

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


_______________________________________________
WSBAPT mailing list
WSBAPT at lists.wsbarppt.com<mailto:WSBAPT at lists.wsbarppt.com>
http://mailman.fsr.com/mailman/listinfo/wsbapt

_______________________________________________
WSBAPT mailing list
WSBAPT at lists.wsbarppt.com<mailto:WSBAPT at lists.wsbarppt.com>
http://mailman.fsr.com/mailman/listinfo/wsbapt
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/wsbapt/attachments/20160602/59d54e1a/attachment.html>