Posted by JS on March 19, 2000 at 18:07:08:
If you put the house in trust naming the original owner as benf. and assign the intrest to you. Then you would not have to assume the loan. His name will still be on the loan. And you really can’t put the mortgage “in trust”, you would put the title in trust. Which has nothing to do with the mortgage, since an owner is allowed by federal law to transfer title to trust without violating any provisions of the mortgage. Now if the mortgage company found out that the benf. intrest was assigned. They could call it due, if they found out about it but how would they? A trust document is a private non-recorded instrument. Even if they did find out, there is a good chance they would not call it due as long as the payments are on time and current. That want that loan out there, thats how they make their money.
The L/O situation. Don’t know? It all depends on the exact wording of the mortgage. Since the loan is NOT being assumed by anyone, the assumable “living requirment” would not apply. It all depends if the mortgage prohibits the original owner from not living there. I an not an attorney. So don’t take this a legal advice. It is just my opinion of the situation. Any comments?
I am also from FL, Ft. Laud area. You?