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Loren, Lawyer
Category: Real Estate Law
Satisfied Customers: 28563
Experience:  30 years of real estate practice experience.
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My husband and I have signed a refinance loan with the VA.

Customer Question

My husband and I have signed a refinance loan with the VA. We have a will stating that my granddaughter will inherit my house. Will the VA honor that, or will she have to get a totally new loan?
Submitted: 5 months ago.
Category: Real Estate Law
Expert:  Loren replied 5 months ago.
Good afternoon. I am Loren, a licensed attorney, and I look forward to assisting you.Under federal law (12 USC § 1701j–3) mortgage lenders are prohibited from calling the loan due just because the borrower passed if a relative takes over the payments..This is the law:.12 USC § 1701j–3 - Preemption of due-on-sale prohibitions(d) Exemption of specified transfers or dispositionsWith respect to a real property loan secured by a lien on residential real property containing less than five dwelling units, including a lien on the stock allocated to a dwelling unit in a cooperative housing corporation, or on a residential manufactured home, a lender may not exercise its option pursuant to a due-on-sale clause upon—.(5)a transfer to a relative resulting from the death of a borrower;So, as long as your daughter continues making the payments and lives in the home, the lender will not exercise a due on transfer clause.
Expert:  Loren replied 5 months ago.
Are you online with me?
Customer: replied 5 months ago.
yes I'm on line. So, what you're telling me is, if my husband and I pass away, and we have willed the house to my granddaughter, as shown in our will, she can continue paying the VA loan with no problems?
Expert:  Loren replied 5 months ago.
Correct. It is allowed under the federal law I provided.
Expert:  Loren replied 5 months ago.
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Expert:  Loren replied 5 months ago.
Did you have further questions before you rate my service to you?
Expert:  Loren replied 5 months ago.
If you have no further questions please remember to rate my service so that I am credited by JA for answering your question and also so that I may close the question. Thanks.

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