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Can a house with a mortgage be transferred from parents to children without satisfying the mortgage?
Wiki User
∙ 13y ago
Referencing the Garn St. Germain Act (§ 1701j-3. Preemption of due-on-sale prohibitions- see US Code link below) which addresses "exemptions of specific transfers or dispositions", that is, transfers which prohibit the execution of a due-on-sale provision:
(d) Exemption of specified transfers or dispositions
With respect to a real property loan secured by a lien on residential real property containing less than five dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housing corporation, or on a residential manufactured home, a lender may not exercise its option pursuant to a due-on-sale clause upon-
(5) a transfer to a relative resulting from the death of a borrower;
(6) a transfer where the spouse or children of the borrower become an owner of the property;
A "transfer to a relative resulting from the death of a borrower" clearly prohibits the triggering of the due-on-sale clause when a relative inherits property from the borrower/owner.
A "transfer where the spouse or children of the borrower become an owner of the property" presumably by deed transfer, is also not subject to the due-on-sale clause.
Having said that, it would be wise to consult with an attorney to ensure that your intended transfer qualifies for GSG protection and with your accounting professional to anticipate any tax consequences (Federal).
Wiki User
∙ 13y ago
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biogeneis or evolution
Are adult children liable for parents mortgage debt?
No, not as long as they didn't co-sign the mortgage. However, if the parents have died and their property is subject to a mortgage the lender will foreclose on the property if the mortgage isn't paid. If the heirs want to keep or sell the property they must keep the mortgage payments current.
What is the study of how genes are transferred from parents to their children and the role of genes in health and disease is known as?
Genetics
If both parents die without a will and left 3 children who owns the property?
If there was a mortgage the bank does, otherwise the 3 children, unless the bank will work with them. Check mortgage docs just in case it was specificied in them who would get it.
Should your parents have you on the title of their house to avoid forced sale?
If your parents granted a mortgage and then default on the payments, adding you to the title after granting the mortgage will not stop a foreclosure.If your parents granted a mortgage and then default on the payments, adding you to the title after granting the mortgage will not stop a foreclosure.If your parents granted a mortgage and then default on the payments, adding you to the title after granting the mortgage will not stop a foreclosure.If your parents granted a mortgage and then default on the payments, adding you to the title after granting the mortgage will not stop a foreclosure.
What would happen if you lives with your mother who dies with an unpaid mortgage and your name not on the loan or deed?
Children will normally inherit their parents' property, which will include the equity in a house, even if the mortgage is not fully paid.
In the state of Maryland both parents died there is no will are the surving children responsible for mortgage on the house?
No, the estate is responsible for the mortgage. This sounds like a case for getting the estate set up and get the house sold as quickly as possible.
Are surviving children in Pennsylvania responsible for paying the mortgage debt of deceased parents?
The children are not directly responsible in Pennsylvania. The estate is responsible to settle all the debts. Until these have been paid, the children are not entitled to receive anything.
If your parents took out a mortgage in their name how do you get a mortgage in your name for the same property?
A property cannot be mortgaged twice at once. Additionally, you must hold the title to the property to place it under mortgage. Unless the other mortgage is paid off and your parents give you the house, you will not be able to get a mortgage on it.
Who has more responsibility parents to their children or children to their parents?
Parents are completely responsible for their children's wellbeing, so it's parents to children.
Are you required to notify the mortgage company when your parents die?
The estate is
Can siblings take over late parents mortgage?
It is not likely to be allowed. The mortgage was an agreement between the parents and the bank. The bank may consider redoing the load with the new owners on it, but they don't have to.
