Simple assumption of mortgage

[empress of self-improvement]

Question: I have paperwork I can fill out to assume the mortgage. What I am trying to figure out/make sure, is when I do so, it is under the same terms and everything as the original in regards to interest rate and all that and is just in fact transferring it from his name and social to mine. Do I have that right?

If someone could tag swamp, I would appreciate it.

[taz157]

Paging swamp!

[swamp]

Yes an assumption is under the same terms.

[empress of self-improvement]

Jun 8, 2021 12:27:35 GMT -5 swamp said:

Yes an assumption is under the same terms.

So the only difference is it will officially be all on me and not DH anymore?
Thank you. Sorry to ask you a legal question like this.

[swamp]

Yes. No problem.

[empress of self-improvement]

Thank you!😍💗😚😚

[Bonny]

Jun 8, 2021 11:29:49 GMT -5 empress of self-improvement said:

Question: I have paperwork I can fill out to assume the mortgage. What I am trying to figure out/make sure, is when I do so, it is under the same terms and everything as the original in regards to interest rate and all that and is just in fact transferring it from his name and social to mine. Do I have that right?

If someone could tag swamp, I would appreciate it.

But you don't have to. Under Garn St. Germain Act of 1982 you as the wife/heir are entitled to take over the mortgage without any changes and without formally assuming the mortgage (or paying any fees or qualifying). 

When my mom passed I was able to take over the mortgages on both of her properties. I think the only thing I had to provide was a death certificate so the bank would talk to me. I did not want the liability of those mortgages affecting me if I had to walk away. The banks, of course wanted my name as another person to go after in case of default.

Trying to figure out why you would want the liability?

swamp , what am I missing?

[gs11rmb]

Jun 8, 2021 14:49:03 GMT -5 Bonny said:

Jun 8, 2021 11:29:49 GMT -5 empress of self-improvement said:

Question: I have paperwork I can fill out to assume the mortgage. What I am trying to figure out/make sure, is when I do so, it is under the same terms and everything as the original in regards to interest rate and all that and is just in fact transferring it from his name and social to mine. Do I have that right?

If someone could tag swamp, I would appreciate it.

But you don't have to. Under Garn St. Germain Act of 1982 you as the wife/heir are entitled to take over the mortgage without any changes and without formally assuming the mortgage (or paying any fees or qualifying). 

When my mom passed I was able to take over the mortgages on both of her properties. I think the only thing I had to provide was a death certificate so the bank would talk to me. I did not want the liability of those mortgages affecting me if I had to walk away. The banks, of course wanted my name as another person to go after in case of default.

Trying to figure out why you would want the liability?

swamp , what am I missing?

That's interesting.  A good friend of mine was suddenly widowed and her husband not only didn't have a will but she was not on either the mortgage or the deed.  Even though she was the widow she couldn't get the mortgage company to work with her at all.  It was a huge mess that was only sorted out a few months ago and her husband died in 2017.  Of course, her situation was complicated by the fact that they had children and were legally entitled to a share in the house.

[empress of self-improvement]

DH didn't have a will either but I am on the deed. If there was one thing he did right, he put me on EVERYTHING. We have no kids and his family doesn't care.

[Opti]

Jun 8, 2021 15:20:30 GMT -5 gs11rmb said:

Jun 8, 2021 14:49:03 GMT -5 Bonny said:

But you don't have to. Under Garn St. Germain Act of 1982 you as the wife/heir are entitled to take over the mortgage without any changes and without formally assuming the mortgage (or paying any fees or qualifying). 

When my mom passed I was able to take over the mortgages on both of her properties. I think the only thing I had to provide was a death certificate so the bank would talk to me. I did not want the liability of those mortgages affecting me if I had to walk away. The banks, of course wanted my name as another person to go after in case of default.

Trying to figure out why you would want the liability?

swamp , what am I missing?

That's interesting.  A good friend of mine was suddenly widowed and her husband not only didn't have a will but she was not on either the mortgage or the deed.  Even though she was the widow she couldn't get the mortgage company to work with her at all.  It was a huge mess that was only sorted out a few months ago and her husband died in 2017.  Of course, her situation was complicated by the fact that they had children and were legally entitled to a share in the house.

Was one of the children the executor of the estate?

[gs11rmb]

Jun 8, 2021 16:47:23 GMT -5 Opti said:

Jun 8, 2021 15:20:30 GMT -5 gs11rmb said:

That's interesting.  A good friend of mine was suddenly widowed and her husband not only didn't have a will but she was not on either the mortgage or the deed.  Even though she was the widow she couldn't get the mortgage company to work with her at all.  It was a huge mess that was only sorted out a few months ago and her husband died in 2017.  Of course, her situation was complicated by the fact that they had children and were legally entitled to a share in the house.

Was one of the children the executor of the estate?

No. Her children are all minors. I think the oldest was about 12 when his father died.

[Deleted]

My DH died almost 5 years ago. Title of our house is in the name of a revocable trust in my name only but the mortgage is in both our names. I haven't bothered to tell the mortgage company. They've cheerfully accepted payments from the checking account in my name only from Day One.

They still address all their refinance offers to him, though.

[Bonny]

Jun 8, 2021 15:20:30 GMT -5 gs11rmb said:

Jun 8, 2021 14:49:03 GMT -5 Bonny said:

But you don't have to. Under Garn St. Germain Act of 1982 you as the wife/heir are entitled to take over the mortgage without any changes and without formally assuming the mortgage (or paying any fees or qualifying). 

When my mom passed I was able to take over the mortgages on both of her properties. I think the only thing I had to provide was a death certificate so the bank would talk to me. I did not want the liability of those mortgages affecting me if I had to walk away. The banks, of course wanted my name as another person to go after in case of default.

Trying to figure out why you would want the liability?

swamp , what am I missing?

That's interesting.  A good friend of mine was suddenly widowed and her husband not only didn't have a will but she was not on either the mortgage or the deed.  Even though she was the widow she couldn't get the mortgage company to work with her at all.  It was a huge mess that was only sorted out a few months ago and her husband died in 2017.  Of course, her situation was complicated by the fact that they had children and were legally entitled to a share in the house.

Ouch, what a mess!

Presumably this happened in a non community property state? She would certainly have had at least a partial interest in the property but it would take time and cost quite a bit to sort it all out.

And I'll also add that some bank employees aren't especially helpful or knowledgable about the law. I had one tell me that the bank didn't allow transfers into Living Trusts which is another exception to the Due on Transfer rule. 

[gs11rmb]

Bonny Georgia isn't a community property state.  I think the issue was that because there was no will and the children were minors they were entitled to 1/3 of the house when it was sold.  She wanted to refinance for a much better rate, get everything in her name, and also pay off the kids now rather than when the equity got extremely large.  When it was all over I think she 'owed' the kids around $100K and her plan was to put it in the three college funds.

She understood the intent behind the law was to make sure children weren't disinherited if a parent died intestate.  However, it really screws over decent parents who are taking care of their children.