Yes, You Can Put a Mortgaged Home into a Revocable Trust
The Garn-St. Germain Act allows homeowners to transfer a mortgaged property into a revocable trust without triggering the due-on-sale clause.
Your mortgage company cannot block or penalize you for doing this.
What You Need to Do
Notify your mortgage company, but you don’t need their permission.
This is simply a process of informing them, not seeking approval.
Irrevocable Trusts Are Different
If you place a home with a mortgage into an irrevocable trust, the lender may not allow it.
Options may include:
Getting lender approval before transferring.
Refinancing the mortgage under the trust’s name (which may not always be ideal).
Key Takeaway
Revocable Trust? No problem—just notify your lender.
Irrevocable Trust? Check with your lender first.
This video is for informational purposes only. As always please get professional help before making decision on how to protect your assets.
Share this post