Author Topic: Deed transfer to spouse -mortgage due on sale exemption  (Read 1482 times)

s0198362

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Deed transfer to spouse -mortgage due on sale exemption
« on: November 06, 2024, 04:37:16 PM »
Under federal law 12 U.S.C. Section 1701j-3(d) there are exemptions to the due on sale clause on mortgage agreements when a property deed is changed:
6) a transfer where the spouse or children of the borrower become an owner of the property;


Does this allow for complete transfer, I.e removing myself and replacing with my spouse (not just the addition of a spouse to a deed)?

I don’t want the mortgage company to enforce a due on sale clause…

Asking as for overseas tax reasons it could be beneficial to not have a property in my name.

I asked a real estate lawyer about this and he was concerned about the wording “become an owner” rather than “the” owner.  He said call the mortgage company…. I mean what’s the point of being a real estate lawyer…

My mortgage currently transferring between lenders so they are no use right now.
« Last Edit: November 06, 2024, 05:04:31 PM by s0198362 »

GilesMM

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Re: Deed transfer to spouse -mortgage due on sale exemption
« Reply #1 on: November 06, 2024, 06:31:22 PM »
My first thought was also call the mortgage company.  If they allow it, you are good to go.  Does your mortgage contract language shed any light on it?