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<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D">You are correct, that the Garn St. Germain Act is to bar the triggering of the due on sale clause. As far as dealing with the loan going forward it largely depends on the bank and whether the
person inheriting likes the terms of the loan (whether good interest rate, the property would not be loanable now due to type/condition, etc.) If the client wants to keep the loan for whatever reason, I simply have a deed done from the estate (usually after
giving bank Notice to Creditors and having the 4-month period run) and have client keep making payments as to my knowledge, the bank is not to allow actual assumption of the loan via change of debtor/obligor. Now the bank, may upon learning of the death,
be eager to rework the loan with the new client due to change in interest rates, etc. as opposed to an assumption. I have on occasion had a client assume the loan but it does take time and can be a headache because the bank’s privacy rules generally impede
dealing with the client even if the client is the Personal Representative. I don’t believe the assumption cost my client anything financially, but it did take a great deal of time. <o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:11.0pt;color:#1F497D"><o:p> </o:p></span></p>
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<p class="MsoNormal" style="text-align:justify"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">Marcus J. Fry<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D">Lyon, Weigand & Gustafson, P.S.
<br>
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</span><span style="font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D"><o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:windowtext">From:</span></b><span style="font-size:10.0pt;font-family:"Tahoma","sans-serif";color:windowtext"> wsbapt-bounces@lists.wsbarppt.com [mailto:wsbapt-bounces@lists.wsbarppt.com]
<b>On Behalf Of </b>Robert West<br>
<b>Sent:</b> Tuesday, July 11, 2017 1:13 PM<br>
<b>To:</b> wsbapt@lists.wsbarppt.com<br>
<b>Subject:</b> [WSBAPT] Today's Topic - Transfer of mortgage and application of Garn St. Germain Act<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman","serif";color:windowtext">I understand under the Garn St. Germain Act the lender cannot exercise the “due on sale” clause in the event of a transfer pursuant to a divorce decree, but does this
release the spouse not retaining the property from potential future liability under the loan? I would think not. Is the lender automatically obligated to approve an assumption by the spouse awarded the property?<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman","serif";color:windowtext"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman","serif";color:windowtext">Robert E. West, Jr.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman","serif";color:windowtext">West Law Offices, P.S.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman","serif";color:windowtext">332 1<sup>st</sup> St NE<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman","serif";color:windowtext">Auburn, WA 98002<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman","serif";color:windowtext">(253) 351-9000<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-family:"Times New Roman","serif";color:windowtext"><a href="mailto:rwest@westlawoffices.com">rwest@westlawoffices.com</a><o:p></o:p></span></p>
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