[WSBAPT] Garn–St Germain Act and VA Loan

[Thomas Sandstrom]

Thanks Diane – very good suggestion.  I will put this back on the loan officer and see what happens.

Thomas D. Sandstrom

SANDSTROM LAW, PLLC
Mail to: P.O. Box 668, Friday Harbor, WA  98250
460 Caines Street, Friday Harbor, WA  98250<https://goo.gl/maps/7YoEopWuNt32>

T 360.378.2191  l  C 360.298.8994  l
 tsandstrom at sjilaw.com<mailto:tsandstrom at sjilaw.com>  l sjilaw.com

From: wsbapt-bounces at lists.wsbarppt.com <wsbapt-bounces at lists.wsbarppt.com> On Behalf Of Diane J. Kiepe
Sent: Tuesday, January 9, 2024 11:02 AM
To: WSBA Probate & Trust Listserv <wsbapt at lists.wsbarppt.com>
Subject: Re: [WSBAPT] Garn–St Germain Act and VA Loan

I think the Loan officer is incorrect but before you withdraw, ask you client to have the loan officer provide the due on sale clause and provide a written opinion on why Federal law does not govern (which I believe it does, as do you).  I could almost guarantee you the loan officer can’t do this; particularly since she is already on the loan.  I have a trusted loan officer and be happy to reach out to him if you’d like.  I believe the loan officer is likely not familiar with family transfers at death.

PLEASE NOTE I WILL BE TRAVELING AND GONE JANUARY 14-22, 2024.  I WILL HAVE ACCESS TO EMAIL AND WILL RESPOND TO YOU AS SOON AS POSSIBLE.

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

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From: wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com> <wsbapt-bounces at lists.wsbarppt.com<mailto:wsbapt-bounces at lists.wsbarppt.com>> On Behalf Of Thomas Sandstrom
Sent: Tuesday, January 9, 2024 10:49 AM
To: wsbapt at lists.wsbarppt.com<mailto:wsbapt at lists.wsbarppt.com>
Subject: [WSBAPT] Garn–St Germain Act and VA Loan

Hello All,

Putting this out there in the case there is something I am missing.  I have a Surviving Spouse/PR who is receiving all assets including the real property from decedent husband.  There is a VA Loan in both names and it was created when the rates were favorable.    I had just completed a Personal Representatives Deed, sent if off to client for review and the next day I received an email that client’s trusted loan officer friend told her we should not be doing this because of the due on sale clause will mean she has to renegotiate the low interest VA loan at a higher rate.   First, I was of the understanding that VA loans typically do not have “due on sale” clauses because they are “assumable”.  Second, my understanding has been that a spouse (relative under the Code) is exempt under Garn-St Germain and should be able to assume the mortgage.   Third the loan is in both Spouse and decedent Spouse’s name.

I am hoping I am not missing something – the loan officer friend has been so adamant that the client is now completely unwilling to sign the Deed.   We can no longer proceed with distribution under the terms of the Will and I suppose I will have to withdraw.  Anyone out there aware of any issue with VA loans and a surviving spouse not being able to assume the loan under same terms?

Best Regards,

Thomas D. Sandstrom

SANDSTROM LAW, PLLC
Mail to: P.O. Box 668, Friday Harbor, WA  98250
460 Caines Street, Friday Harbor, WA  98250<https://goo.gl/maps/7YoEopWuNt32>

T 360.378.2191  l  C 360.298.8994  l
 tsandstrom at sjilaw.com<mailto:tsandstrom at sjilaw.com>  l sjilaw.com

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