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<p class="MsoNormal">I’m wondering if anyone here could point to some resources or offer thoughts/advice regarding the following situation:<o:p></o:p></p>
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<p class="MsoNormal">Clients (H and W) own 2<sup>nd</sup> home in greater Seattle area that they rent to son and daughter-in-law (S and DIL). S and DIL currently pay close to fair market rent, but would like to purchase the home. However, S and DIL do not have
financial means to obtain conventional financing from a lender given today’s higher rates. H and W’s 2<sup>nd</sup> home is worth $500,000. Balance remaining due is $250,000 (secured by DOT) with excellent interest rate compared to current market interest
rates. H and W would like to sell 2<sup>nd</sup> home to S and DIL, but don’t want to pay off current mortgage balance (and use up all their cash) to offer 100% seller financing to them. It appears that 12 USCS Section 1701j-3 (Garn St. Germain) under subsection
(d)(6), specifically excepts from enforcement a due on sale clause for “a transfer where the spouse or children of the borrower become an owner of the property.” H and W previously contacted mortgage lender and advised of their intent to transfer 2<sup>nd</sup>
home to S. No response has been received and it has been approximately 9 months. H and W have been waiting patiently, but would like sell property to S and DIL at Fair Market Value with S and DIL assuming current mortgage and executing a 2<sup>nd</sup> note
(for $250,000) secured by 2<sup>nd</sup> DOT.<o:p></o:p></p>
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<p class="MsoNormal">Is it problematic that the home sought to be transferred is a rental (from my reading of the regs it
<i>seems okay</i> <i>—</i>but anyone else think otherwise)?<o:p></o:p></p>
<p class="MsoNormal">Anyone generally have a best practice with respect to proceeding if written consent is not forthcoming from lender?<o:p></o:p></p>
<p class="MsoNormal">Thoughts on whether this is a bad or good idea?<o:p></o:p></p>
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<p class="MsoNormal">FWIW, lender is United Wholesale Mortgage. Thanks in advance for any thoughts, ideas, advice.<o:p></o:p></p>
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<p class="MsoNormal"><b><span style="font-size:10.0pt;font-family:"Arial",sans-serif;mso-ligatures:none">Timothy A. Wagar LLM<o:p></o:p></span></b></p>
<p class="MsoNormal"><b><span style="font-size:8.0pt;font-family:"Arial",sans-serif;mso-ligatures:none">Phone & Fax</span></b><span style="font-size:8.0pt;font-family:"Arial",sans-serif;mso-ligatures:none">: 425-358-5340<o:p></o:p></span></p>
<p class="MsoNormal"><b><span style="font-size:8.0pt;font-family:"Arial",sans-serif;mso-ligatures:none">Email</span></b><span style="font-size:8.0pt;font-family:"Arial",sans-serif;mso-ligatures:none">:
</span><span lang="FR" style="font-size:8.0pt;font-family:"Arial",sans-serif;mso-ligatures:none"><a href="mailto:tim@testamentlawfirm.com"><span lang="EN-US" style="color:#0563C1">tim@testamentlawfirm.com</span></a></span><span style="font-size:8.0pt;font-family:"Arial",sans-serif;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:8.0pt;font-family:"Arial",sans-serif;mso-ligatures:none">22525 SE 64<sup>th</sup> Pl.
<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="FR" style="font-size:8.0pt;font-family:"Arial",sans-serif;mso-ligatures:none">Suite 2053<o:p></o:p></span></p>
<p class="MsoNormal"><span lang="FR" style="font-size:8.0pt;font-family:"Arial",sans-serif;mso-ligatures:none">Issaquah, WA 98027<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:12.0pt;mso-ligatures:none"><a href="http://www.testamentlawfirm.com/"><b><span lang="FR" style="font-size:8.0pt;font-family:"Arial",sans-serif;color:windowtext">www.testamentlawfirm.com</span></b></a></span><span lang="FR" style="font-size:8.0pt;mso-ligatures:none"><o:p></o:p></span></p>
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<p class="MsoNormal"><span lang="FR" style="mso-ligatures:none"><o:p> </o:p></span></p>
<p class="MsoNormal"><span style="font-size:9.0pt;mso-ligatures:none">If you received an e-mail from Testament Law, the e-mail and all attachments transmitted with it are intended solely for the use of the addressee and may contain legally priviliged and confidential
information. If the reader of the message is not the intended recipient, you are hereby notified that any dissemination, distribution, copying or other use of the message or its attachments is strictly prohibited. If you have received a message in error, please
notify the sender immediately by replying to the message and please delete it after doing so.<o:p></o:p></span></p>
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