Father inlaw has house is going to walk away from offered to my wife on a cod being she is his daughter found out she is excempt from the "due on sale" clause my question is how to set up the contract because he does not want to collect any extra money on this deal so no interest paid to him just basically taking over mortgage thank you for the help

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Originally Posted by jonboy2012

Father inlaw has house is going to walk away from offered to my wife on a cod being she is his daughter found out she is excempt from the "due on sale" clause my question is how to set up the contract because he does not want to collect any extra money on this deal so no intrest paid to him just basically taking over mortgage thank you for the help

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Where is this? The mortgage company has to approve any "take over."

What does the "due on sale" clause say - exactly.

If the loan is in arrears, the loan will have to be brought up to date. If the bank will let him assign the loan to the daughter, then no need for a contract. If the loan can't be assigned, then you make the contract for the same as the mortgage payments and the same remaining term.

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Originally Posted by ScottGem

If the loan is in arrears, the loan will have to be brought up to date. If the bank will let him assign the loan to the daughter, then no need for a contract. If the loan can't be assigned, then you make the contract for the same as the mortgage payments and the same remaining term.

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I would suggest that a person in the legal field review the loan, the exact terms, just to be sure.

I keep hearing horror stories of people who assume mortgages and loans, years later the bank gets wind of it and decides to cause a problem. Never understand it because the housing market is so bad but...