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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Simple transfer of title to your revocable trust. Posted by Ward-CA- on January 06, 2003 at 7:19 AM In Reply to: Re: Garn-St Germain Act of 1982 posted by Gary on January 02, 2003 at 10:23 PM : Ward: : I have a question related to the Garn-St. Germain Depository Institutions Act of 1982. I refinaced my primary house through Ditech Funding and would like to do the same with a rental. They had no problem with my placing my residence in a trust after I refinance. They did have trouble with this on the rental property. I was told that if I placed my rental in a trust after getting refinanced, Ditech would call the loan due. Isn't this a violation of the Garn-St. Germain Act or have they circumvented this in some way such as having the borrower agree that they can't put it in a trust? : Gary =•=•=•=•=•=•=•=•=•=•= Gary, Lenders can exercise their due-on-sale rights only if they can show that there’s been an irrevocable transfer of the title of property to an outside party, and the lender has a mortgage/trust deed recorded against the property containing a due-on-sale clause. So I would impress upon them that merely deeding your property out of your name and into your revocable trust amounts to nothing more than a change in how you continue to hold title to the property. Tell them that all you’ve done is put your property’s title into a revocable trust to avoid probate, just like thousands of other borrowers of theirs have done. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : : Ward: : : I have a question related to the Garn-St. Germain Depository Institutions Act of 1982. I refinaced my primary house through Ditech Funding and would like to do the same with a rental. They had no problem with my placing my residence in a trust after I refinance. They did have trouble with this on the rental property. I was told that if I placed my rental in a trust after getting refinanced, Ditech would call the loan due. Isn't this a violation of the Garn-St. Germain Act or have they circumvented this in some way such as having the borrower agree that they can't put it in a trust? : : Gary : =•=•=•=•=•=•=•=•=•=•= : Gary, : Lenders can exercise their due-on-sale rights only if they can show that there’s been an irrevocable transfer of the title of property to an outside party, and the lender has a mortgage/trust deed recorded against the property containing a due-on-sale clause. : So I would impress upon them that merely deeding your property out of your name and into your revocable trust amounts to nothing more than a change in how you continue to hold title to the property. Tell them that all you’ve done is put your property’s title into a revocable trust to avoid probate, just like thousands of other borrowers of theirs have done. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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