[WSBAPT] Inherited mortgage

[John J. Sullivan]

So B and S are both mortgagors on the existing mortgage? Or was the mortgage taken out by the decedent they inherited the property from? If the latter, neither is personally obligated on the underlying note. 

If the former, B remains liable directly to lender under the promissory note. He would have to secure a release from the lender, which is rarely granted without S refinancing and qualifying separately. 

Secure indemnification agreement with second position deed of trust? If brother is relieved of liability at time of transfer there might be consideration for REET purposes. 

John J. Sullivan

Sent from my iPhone

> On Oct 11, 2017, at 2:27 PM, Lisa E Schuchman <lisa at lisaschuchman.com> wrote:
> 
> Sister (S) and brother (B), both adults, inherited a house from their mother on her death.  We’re getting ready to close the probate and transfer title to them.  They understand that they can keep the existing mortgage without additional need to qualify.  But if B later gifts his share of the house to S, can B disentangle himself from the mortgage obligation and leave S fully liable?  I know that Garn-St. Germain wouldn’t apply to that transfer, but since S is already in the place of the mortgagor can B get out of it?  Does anyone have a better suggestion?
>  
> Thanks.
>  
> Lisa E. Schuchman
> 206-960-4212
> www.lisaschuchman.com
> 
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