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N Cal Attorney
N Cal Attorney, Lawyer
Category: Real Estate Law
Satisfied Customers: 9389
Experience:  Since 1983
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If a mother owns title to a parcel of real estate and she has

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If a mother owns title to a parcel of real estate and she has a loan on it, and she later as the Grantor executes and records a deed that grants title to herself, and her Son as Grantee,. and later she grants her interest in the property to her Son. The loan is still in her name, A year later the mother dies,

Question; Can the Son keep making the payments on his mother's loan and take over the loan in his name? the proprty is in California.
The answer is yes under the Garn St. Germain Act, see
which states:

With 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;

6) a transfer where the spouse or children of the borrower become an owner of the property;

Both transfers fall within one of the exceptions to the due on sale clause, so you do appear to have the right to assume the existing financing.

I hope this information is helpful.
N Cal Attorney and 3 other Real Estate Law Specialists are ready to help you
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