My father is a Veteran with a VA Mortgage.
He and I are listed on the Deed has Joint Tenants with Rights of Survivorship
The mortgage is between my father and the lender and it is assumable.
Please note that I am my father's Durable Power of Attorney and the Executor of His Will.
Here is my question:
If my father passes away, as the joint tenant and owner with rights of survivorship who currently resides in the home, will I be able to continue to make mortgage payments to the lender and not apply for a new loan? Based on the Garn-St. Germain Depository Institutions Act, the law spells out a number of situations in which lenders are specifically prohibited from exercising the due-on-sale clause. One such exception is where there is "a transfer to a relative resulting from the death of a borrower.
Since I am already list as the Joint Tenant with Rights of Survivorship, I believe that I am protected.
If my assumptions are true, due the downfall of the American economy, my father's goal is to enter into the VA Streamline Rate Reduction program at a 30 yr fixed rate of 2.875%/ 2.947% APR or less to lower the payments from the current 4.375% APR.
Please note that he just exercised his VA Entitlement last year when he refinance the home. Of course, as his POA
, I signed all the paperwork including endorsing my own signature because the as evidence I am listed on the recorded Deed since 2008 as Joint Tenants with Rights of Survivorship.
Please note that both our Credit Score are excellent. His credit score is 765 and my credit score is 839.
I await your response.
Thank you for your time.