[WSBAPT] Transfer of Mortgage

Tue Jul 11 11:22:25 PDT 2017

Thank you all!

We are taking the last approach set out by John, where the parents are
willing to assign their interest to the surviving spouse given that if they
were to disclaim, the a sister comes into play and we would like to keep
her on the bench.

Much appreciated feedback,

Brent

On Tue, Jul 11, 2017 at 11:15 AM, John Creahan <john at cairn-law.com> wrote:

> Brent,
>
> Under Garn St. Germain, which applies even if there is no will, due on
> sale clauses are unenforceable with regard to transfers to a relative
> resulting from the death of a borrower or where the spouse or children of
> the borrower become an owner of the property.
>
> I think there are a couple of ways to achieve this. The easiest would be a
> disclaimer by the parents, which would only work if the wife became the
> alternate beneficiary.
>
> A TEDRA agreement could also work, but is riskier in that the bank could
> potentially argue that it was ineffective.
>
> Finally, the parents could assign their interest in the house to the wife,
> allowing the PR to distribute the house directly to the surviving spouse.
> In my opinion, that would fall squarely within the “spouse becomes an owner
> of the property” provision.
>
> Hope this helps,
>
> John
>
>
>
> John Creahan
>
> www.cairn-law.com
>
> *Now located in the heart of Fremont *3417 Evanston Ave. N, Suite 312
> Seattle, WA 98103
> 206-578-5877 <(206)%20578-5877>
>
>
>
>
>
> *From:* wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.
> wsbarppt.com] *On Behalf Of *Brent Williams-Ruth
> *Sent:* Tuesday, July 11, 2017 10:48 AM
> *To:* WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
> *Subject:* Re: [WSBAPT] Transfer of Mortgage
>
>
>
> Thank you. No  sadly, the will in place named his parents as beneficiary
> as they had been married only a shorter period of time and had been
> actively deployed. He passed suddenly while they were meeting with JBLM
> office to re-write the will leaving everything to his wife.
>
>
>
> The parents have been amazing and are working to get everything to stay
> with his wife with as little tax consequence as possible.
>
>
>
> Appreciate all the help!
>
>
>
> Brent
>
>
>
> On Tue, Jul 11, 2017 at 10:33 AM, Mary Stone <mlstone at rockisland.com>
> wrote:
>
> Did the husband have a will, leaving the real estate to his wife?  If so,
> the Garn St. Germain Act says that the lender cannot invoke the
> ‘due-on-sale’ clause.  They must continue to accept payments from the wife.
>
>
>
> *From:* wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.
> wsbarppt.com] *On Behalf Of *Brent Williams-Ruth
> *Sent:* Tuesday, July 11, 2017 8:41 AM
> *To:* WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
> *Subject:* [WSBAPT] Transfer of Mortgage
>
>
>
> Good Morning List -
>
>
>
> I am in the middle of a probate matter where there is real property with a
> mortgage and a surviving spouse - but a minuscule community property
> interest.  The house and mortgage were acquired 10+ years before the
> relationship and marriage so the surviving spouse is not on either the
> title or the mortgage.
>
>
>
> Given that this is my first probate where there is still an outstanding
> mortgage obligation and am needing some advice/tips as when the surviving
> spouse originally went to the bank after death they advised her that they
> would replace her name on the mortgage. That sounded too good to be true
> when she told me about that and I advised her to make another visit.  On
> the next visit that happened this week, she was told she would be required
> to refinance and pay all the associated charges and fees.
>
>
>
> I'm not sure whether that (refinance) is the only answer, or if I just
> need to speak with someone different that who she was talking with.
>
>
>
> Appreciate the assistance.
>
>
>
> Thank you,
>
> Brent
>
>
>
> --
>
> *Brent Williams-Ruth*
> *Founding Member*
>
> *BWR Consulting, PLLC*
>
> Phone: (425) 830-5134
>
> e-mail <brent at bwrconsults.com> / website <http://www.bwrconsults.com> /
> facebook <http://www.facebook.com/bwrconsults>
>
>
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>
>
>
>
> --
>
> *Brent Williams-Ruth*
> *Founding Member*
>
> *BWR Consulting, PLLC*
>
> Phone: (425) 830-5134
>
> e-mail <brent at bwrconsults.com> / website <http://www.bwrconsults.com> /
> facebook <http://www.facebook.com/bwrconsults>
>
> _______________________________________________
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-- 

*Brent Williams-Ruth*
*Founding Member*

*BWR Consulting, PLLC*

Phone: (425) 830-5134

e-mail <brent at bwrconsults.com> / website <http://www.bwrconsults.com> /
facebook <http://www.facebook.com/bwrconsults>
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