[WSBAPT] Unmarried partner inheriting real property - mortgage terms

Thu Jun 30 13:56:10 PDT 2022

My immediate thought is to deny this as a valid creditor's claim.

*disclaimer* I have not litigated this issue in a creditor's claim so I may
be entirely off-base.

But I operate under the presumption that a creditor's claim is a claim
against the estate that, if valid, must be satisfied before you can proceed
forward and eventually close the estate.  Because of the Garn-St. Germain
Act, (presuming they are valid under those terms and conditions), this is
not a valid creditor's claim as the statute allows for the mortgage to
continue under that law.

I might try to make a few phone calls to talk with someone at that
institution (preferably their legal department) to try and get this
resolved.

But the bottom line is that I have operated my estates in such a manner
that if there is a claim filed - we must resolve it one way or another -
before we can move forward.

Brent

*Brent Williams-Ruth* (pronouns: he/him)

*Attorney-At-Law*

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

*Physical Address: 500 S 336th Street, Suite 214; Federal Way, WA 98003*

***EFFECTIVE IMMEDIATELY** All mail sent through the USPS should be sent to
the following address: **PO BOX 3319; Federal Way, WA 98063 *

Office/Scheduling Phone: (253) 285-7751

Direct: (253) 285-7453

e-mail <Brent at Williams-RuthLaw.com> / website
<http://www.williams-ruthlaw.com/> / facebook
<http://www.facebook.com/bwrlaw> /

On Thu, Jun 30, 2022 at 1:30 PM Natalie Kuehler <nk at kuehlerlaw.com> wrote:

> I just had an spouse who is taking real property as community property and
> the lender filed a creditor’s claim, even though the surviving spouse is
> already named on the loan documents and of course the loan is secured by a
> deed of trust. I’m told a creditor’s claim was filed because “we had
> issues in the past with remedies being waived when a secured creditor did
> not do so. However, we take the position that the loan is current and
> should continue to be paid in the normal course, notwithstanding the claim;
> we do not intend to foreclose or pursue other remedies unless the loan
> falls into default on a future date.”
>
>
>
> I’m not sure what I need to do with the claim. We don’t dispute there’s a
> valid mortgage that needs to be paid on time and that the deed of trust
> encumbers the property. So do I just let the creditor’s claim sit there? Or
> do we enter into an agreement regarding the continued validity of the
> mortgage? I had proposed the lender just have the spouse assume the loan on
> her own if they wanted to and withdraw the creditor’s claim.
>
>
>
> Natalie
>
>
>
> Natalie N. Kuehler
>
>
>
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> received this message in error, please notify the sender immediately and
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>
> *From: *wsbapt-bounces at lists.wsbarppt.com <
> wsbapt-bounces at lists.wsbarppt.com> on behalf of Diane J. Kiepe <
> DJKiepe at depdslaw.com>
> *Date: *Thursday, June 30, 2022 at 12:59 PM
> *To: *WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
> *Subject: *Re: [WSBAPT] Unmarried partner inheriting real property -
> mortgage terms
>
> 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
>
> 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*
>
> *Physical Address: 500 S 336th Street, Suite 214; Federal Way, WA 98003*
>
> ***EFFECTIVE IMMEDIATELY**** All mail sent through the USPS should be
> sent to the following address: PO BOX 3319; Federal Way, WA 98063 *
>
> Office/Scheduling Phone: (253) 285-7751
>
> Direct: (253) 285-7453
>
> e-mail <Brent at Williams-RuthLaw.com> / website
> <http://www.williams-ruthlaw.com/> / facebook
> <http://www.facebook.com/bwrlaw> /
>
>
>
>
>
> On Thu, Jun 30, 2022 at 8:17 AM Suzanne Lieberman <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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