July 27, 2021

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Mortgage News

Liz Weston: Trust home transfer won’t require new mortgage qualifications

Dear Liz, my father set up a living foundation, which also includes his house with a mortgage on it. The lender accepted the transfer of the house to the trust. Dad passed away recently, so the house should be handed over to my sister and me. Can the lender trigger the due-on-sale clause? Or let me or my sister qualify for the mortgage?

Answer: A federal law called Garn-St. The 1982 Germain Depository Institutions Act outlines several situations in which lenders cannot enforce sale clauses, including when a home passes to a relative or roommate, said Jennifer Sawday, a Long Beach estate planning attorney. The law applies to residential properties with four or fewer residential units.

You and your sister do not need to qualify for a new loan, but you can still make payments under the current mortgage terms. If you cannot afford the payments, you will need to consider other options such as paying. B. refinancing or selling your home.

Dear Liz, I didn’t work in 2020 due to the pandemic. Can I contribute to a Spouse IRA for 2020 as my husband still has an income and will contribute to his Roth IRA? Does it have to be a separate account from my existing IRAs?

Answer: As long as your husband has an income, you can contribute to your IRA. You do not need to set up a separate account to pay this spouse contribution.

Whether yours or not Contribution is deductible depends on your income and whether your husband is covered by a company pension such as 401 (k). If this is not the case, your spouse’s contribution is fully deductible. If it is covered, your ability to deduct your contribution will expire for a modified adjusted gross income of $ 196,000 to $ 206,000.

Liz Weston, a certified financial planner, is a personal finance columnist for NerdWallet. Questions can be sent to them at 3940 Laurel Canyon, # 238, Studio City, CA 91604, or via the contact form at asklizweston.com.