Many people are concerned about the possibility of their mortgage holder accelerating their mortgage when they transfer their property into their revocable living trust. Luckily that fear is unfounded, as Federal law prohibits Banks from accelerating a mortgage as the result of a transfer into a trust maintained for the benefit of the mortgage holder. The Garn-St. Germain Depository Institutions Regulation Act passed in the 1980’s codified this. In essence, you may put your house into a revocable trust to avoid probate regardless of whether the property is subject to a mortgage.
Of course, owning your home in a trust has big advantages. It makes the property much easier to manage in the event of your incapacity, and allows your family to quickly liquidate a property avoiding a costly probate.
If you need help putting your home or other real property into your trust, we would be happy to help. You can always give us a call at 954-603-7603.