If I have a mortgage, will the transfer of my property into my trust trigger the due-on-sale clause?
Not if the transfer is structured correctly. The Garn-St. Germain Depository Institutions Act of 1982 expressly prohibits lenders from exercising the due-on-sale clause when title is transferred into a revocable "trust in which the borrower is and remains a beneficiary and which does not relate to a transfer of rights of occupancy in the property."
See this link for the text of the law:
http://www4.law.cornell.edu/uscode/search/display. html?terms=1701j–3&url=/uscode/html/uscode12/usc_s ec_12_00001701---j003-.html| http://www.floridahomesteadservices.com |
