So long story, my dad owned a house and gave it to me in his will. My sister filed probate to which I became executor to because she showed up to court with no lawyer like an idiot. The whole thing was a shit show and incredibly drawn out for someone with minimal assets my siblings just wanted to make things hard for no reason. So finally once probate came to and end 2 years later I was free to get the house put in my name. So I transferred myself the deed and filed it with the recorders office. Next I go to get the mortgage assumed and this is where things get weird. So before probate ended I was told by my lawyer that under the Garn-St. Germain act I could just assume the mortgage without refinancing which is what I wanted to do given my dad had a 0% interest rate. I've been trying to get in touch with them for weeks and when I finally get someone on the phone they said that "those kind of homes are not assumable". Now my lawyer has closed out probate months ago and had stroke since then so as of right now I'm having to navigate this on my own. After doing some digging I think my dad's home was a habitat for humanity home but even with that being said everything says I can still assume the mortgage under the protected circumstances of inheritance due to my father's death. Does anyone have any knowledge about this? Or what I can do or do I just continue to pay the mortgage under his name?
I inherited a house with 0% interest, so why can't I change it to my name?
byu/AltBlackAngel666 inpersonalfinance
Posted by AltBlackAngel666
13 Comments
You need to get the documentation for the lien that is placed on his home. That’s the only thing that can really answer your questions. If he received the house under special circumstances – then there may be special circumstances to account for.
Your sister tried to go it alone and lost, because she didn’t have a lawyer. You had a lawyer, and won. Now that you don’t presently have representation you want to do what she did and somehow expect it to work for you?
Take your own advice and get a lawyer.
Habitat for humanity homes probably aren’t subject to normal mortgage rules since habitat for humanity isn’t really a bank. The fact that the mortgage is 0% probably means they don’t have to abide by a lot of the rules
What is the “everything” that says you can assume the mortgage?
It looks like some habitat for humanity mortgages can be assumed, but you may have to refinance.
Ultimately, it will depend on details within the mortgage documentation. Even though you might be able to assume the mortgage and there may be laws that prevent lenders from forcing you to pay off the mortgage on the death of the original holder of the mortgage, they may still be allowed to require refinancing of the loan (I.e., so that it’s not 0% anymore because the 0% was only granted based on the circumstances of the original mortgage application)
See if there are any clauses that require you to refinance in the event of an assignment of the loan to another person.
You are not entitled to assume the loan under your name under Garn-St. German. You may continue to pay it as agreed under the deceased name. Just roll with it.
Habitat for Humanity homes do not have assumable mortgages.
Three seconds on Google answered that question.
Can you not keep paying the mortgage as is?
Really old mortgages used to be assumable. In the past 20-30 years these types of loans are not common. An assumable mortgage allows you to put the equity down and assume the payments of the original terms. I would talk with someone in really estate to look over the mortgage.
Habitat for Humanity offers zero interest mortgages and they are not assumable
I work with nonprofit and the answer is it depends. Please contact a lawyer. When someone gets a Habitat home, they actually own it. They buy it through an affordable mortgage, not a gift. So, legally, it is their property.
Most Habitat homes have deed restrictions or resale clauses. That means the owner can’t just sell it at market value or pass it on without Habitat’s involvement. Sometimes Habitat keeps the right of first purchase if the homeowner sells or passes away.
If the homeowner passes away, the home usually goes through normal inheritance (to children, spouse, or heirs). But, if there are restrictions in the deed, the heirs may have to either:
-Live in the home themselves, and meet the program’s requirements, or
-Sell it back to Habitat or under the restricted terms
If you have the home deeded into your name, most of the time the mortgage company is fine as long as you keep paying the mortgage. If that ends up being the case, then no assuming the mortgage needed. Obviously the most official answer is “no, we dont allow that” if you ask the mortgage company directly. But most of the time, if you keep paying they have no issues. They still have the lien on the house.
Habitat for Humanity is not a standard federal mortgage lender and may not fall under the rules of Garn. There can be different terms and conditions that apply.
Get a copy of all the original documents, dump those in NotebookLLM, and if it can convince you that you have no chance to continue the mortgage, fine, proceed from there. If it seems like you may be able to, or you’re still uncertain, get a new lawyer.
My bank said that if I made any change to the deed, that they could demand payment in full. I wanted to change the name on it.