[WSBAPT] Transfer of Residence to Child

[Heather de Vrieze]

Jim,

It is my understanding that the daughter will be able to continue making payments on the mortgage, but likely not "assume" the mortgage. The mortgage company simply can't enforce their due on sale clause because of the transfer "where the spouse or children of the borrower become an owner of the property". This is not the same thing as the mortgage company putting daughter on the loan. I don't think they are required to change anything, they are simply not allowed to call the loan if the daughter continues to comply with the terms of the loan otherwise.

Heather

Heather S. de Vrieze
Attorney-at-Law
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From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of jbdolan at jbdolan.com
Sent: Wednesday, December 6, 2023 3:28 PM
To: 'WSBA Probate & Trust Listserv' <wsbapt at lists.wsbarppt.com>; 'Elder Law Section' <elder-law-section at list.wsba.org>
Subject: [WSBAPT] Transfer of Residence to Child

I have a Medicaid matter involving the potential transfer of mom's home to her daughter - either based on the 2 year adult child in-home caregiver rule or based on the transfer to a disabled child rule.  Over the years, I have had occasion to do this only a few times, and in those cases the transferred residence was paid for in full.  In this pending situation, there is a mortgage.

I believe transferring the home to the adult in home care giver daughter or adult disabled daughter will be acceptable to DSHS for Medicaid purposes.  I also believe that the mortgage company will not be able to require the daughter to qualify for refinancing pursuant to Garn - St. Germain, but I am throwing this out to the hive for feedback.  Am I correct in my belief that the daughter can simply assume the mortgage?

Thank you in advance for your wisdom.

Jim Dolan

=========================

Jones Butler Dolan, PS
P.O. Box 458
10027 SR 532
Stanwood, WA 98292
(tel) 360-336-2939
(fax) 360-336-2949

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