[WSBAPT] Inherited mortgage

[Eric Nelsen]

If bank finds out about the transfer, they might demand a refi. Most likely the DOT allows them to accelerate the debt and demand payment in full upon any transfer of the underlying ownership that isn't exempted by Garn-St. Germain.

Sincerely,

Eric

Eric C. Nelsen
SAYRE LAW OFFICES, PLLC
1417 31st Ave South
Seattle WA  98144-3909
phone 206-625-0092
fax 206-625-9040

From: wsbapt-bounces at lists.wsbarppt.com [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of Lisa E Schuchman
Sent: Wednesday, October 11, 2017 2:50 PM
To: WSBA Probate & Trust Listserv
Subject: Re: [WSBAPT] Inherited mortgage

John, their deceased mother took out the mortgage.  Would you expect the mortgage company to permit them to continue the mortgage in S’s name only, even though title will be in both names?  I ask that knowing that many mortgage companies have never heard of Garn-St. G.

Lisa E. Schuchman
206-960-4212
www.lisaschuchman.com<http://www.lisaschuchman.com/>

I learn, I give. – Gloria Steinem

NOTE: I do not use encrypted email.  Messages sent to or from my office via email are not secure and may not be protected by attorney-client privilege. This email address is not monitored at all times.  If your matter is urgent, please phone my office during regular business hours.

Any tax advice included in this document and its attachments was not intended or written to be used, and it cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code.
P  Please consider the trees before printing this document

From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> [mailto:wsbapt-bounces at lists.wsbarppt.com] On Behalf Of John J. Sullivan
Sent: Wednesday, October 11, 2017 2:41 PM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>>
Subject: Re: [WSBAPT] Inherited mortgage

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<mailto: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<http://www.lisaschuchman.com/>

I learn, I give. – Gloria Steinem

NOTE: I do not use encrypted email.  Messages sent to or from my office via email are not secure and may not be protected by attorney-client privilege. This email address is not monitored at all times.  If your matter is urgent, please phone my office during regular business hours.

Any tax advice included in this document and its attachments was not intended or written to be used, and it cannot be used, for the purpose of avoiding penalties under the Internal Revenue Code.
P  Please consider the trees before printing this document

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