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Real Estate Home Mortgages/Transfer of property with mortgage from trust


I am the successor trustee and sole beneficiary for a revocable living trust that was my stepfathers. My stepfather passed away on 5/3/16. Of issue is his home, which was titled in the trust through a quit claim deed. The house has a mortgage on it through Chase. I want to transfer the house to my name, but I'm nervous because of the mortgage. I'm also unclear if Chase will try to get me to qualify for the mortgage in order to assume it, and I'm not even sure if I need to put the mortgage in my name or just leave it in my stepdads name and keep paying it? Right now it's being paid through a bank account that the trust has. My goal is to put the deed to the house in my name and keep paying the mortgage on autopay. Please let me know if you see any issues or have any suggestions (or questions first). Thank you!


Banks use tax-service agencies whose job is to inform the bank whenever there is a change in title on a property securing their loan. Since we know that Chase will be notified about the change once you transfer the property from the trust to yourself, the question then is how long it will take it to act on it. Once Chase acts on the information, it will ask you to either refinance the loan (through Chase or any other bank) within 90 days, or else apply for an assumption. One ray of hope: when your last name is the same as your stepfather's, there is a small probability that nothing would happen.

I like your idea of continuing an auto-pay through the trust, with one modification: each month write a check to the trust for the mortgage amount, and then have the trust pay the mortgage via the auto-pay. The reason is that should the bank demand sometime in the future that you apply to assume the mortgage in your name, the fact that you can document the fact that you have been making the loan payments for the past X number of months (preferably over 12) would be a strong point in your favor.

Best wishes,

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This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here

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Eric Forster


Did your last mortgage broker or lender trick you into a messy situation which could cost you your home? I've been close to 30 years in the mortgage industry, and I've seen it all. Believe me, it is not pretty. As the owner of a mortgage company I am called frequently to testify as an expert witness in mortgage fraud cases and other cases where lenders did not fully disclose the terms of the loans they were offering to the borrowers. I have seen fraud being committed by borrowers - and by lenders. It's a tough world out there. And by the way - you are invited to visit my website,


More than 25 years in loan production and underwriting in Southern California.

Mortgage Bankers of America (Southern California Chapter)

Former columnist for AOL Financial Center and the author of a mortgage primer.

MBA (Finance)

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