[WSBAPT] Unmarried partner inheriting real property - mortgage terms

[Diane J. Kiepe]

I have a son who is inheriting land and the credit union said he has to “assume” the loan.  I had never heard that term and told the PR to make sure the heir understands what he is signing.  In the end, I think the heir may refi to pull out some equity anyway but, it just struck me as odd – of course, I still learn something and hear something new everyday!

Diane J. Kiepe

Diane J. Kiepe
Douglas Eden
717 W. Sprague Ave.
Suite 1500
Spokane, WA  99201
djkiepe at depdslaw.com<mailto:djkiepe at depdslaw.com>
509-455-5300

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Brent Williams-Ruth
Sent: Thursday, June 30, 2022 8:35 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Unmarried partner inheriting real property - mortgage terms

I do not hold any belief to be an expert on the Garn-St. Germain act, but there are specific provisions pertaining to the "due on sale" clause.  The fact that they are not married, I would believe, kicks this into a (d)(3) situation - a transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety; - but as you can see the requirement is that they were joint tenants on the title.

Normally, I would agree with everything Dalynne says....however, I have a current probate where the note is held by US Bank (yes, I am naming names) and they are being VERY AGGRESSIVE to obtain proof that the person who is inheriting will be doing so under the terms of the Act.....I believe that with the mortgage rates rising substantially that we are going to see many more banks take interest in following the strict letter of the Act because they would love nothing more to either a) refinance to a higher interest rate or b) have the property sold and taken off the books as a liability where they will increase their cash on hand that said bank can then re-lend to someone else at a higher rate.

Just my two cents on this.


Brent Williams-Ruth (pronouns: he/him)
Attorney-At-Law

Law Offices of Brent Williams-Ruth, a division of BWR Consulting, PLLC

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On Thu, Jun 30, 2022 at 8:17 AM Suzanne Lieberman <suzanne at cmslawfirm.com<mailto:suzanne at cmslawfirm.com>> wrote:
Hello,

If an unmarried surviving partner inherit's decedent's real estate and partner is the sole beneficiary under decedent's will, the lender can't call the note under the federal regulations, correct (the partner can maintain the mortgage terms, if a regular mortgage)?

Sincerely,

Suzanne Lieberman
CMS Law Firm LLC<http://cmslawfirm.com/>
811 Kirkland Ave. Suite 201 (please note new address!)
Kirkland, WA 98033
206-383-6484 (Cell Phone)
206-659-1512 (Main Office)


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