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#2167863 - 03/13/18 05:43 PM Becoming successor in interest through divorce
Beth175 Offline
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Beth175
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Wisconsin
Can anyone help me understand how a person may become a successor in interest through a divorce? The only thing I can think of would be an unusual situation where the spouse getting the house was not on title to the property previously.

Thanks in advance!

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#2167868 - 03/13/18 05:50 PM Re: Becoming successor in interest through divorce Beth175
rlcarey Online
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rlcarey
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Galveston, TX
You got it
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#2168109 - 03/14/18 04:21 PM Re: Becoming successor in interest through divorce Beth175
Inherent_Risk Offline
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Hypothetical:

If Bob and Sue are married and both own the property, but only Sue is a borrower. Bob gets the property in the divorce.Would Bob be a successor in interest in this situation?

I was thinking this would make Bob a successor in interest, but now I'm not so sure.

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#2168123 - 03/14/18 04:59 PM Re: Becoming successor in interest through divorce Beth175
rlcarey Online
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rlcarey
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I don't think so. If you are already a property owner you are not a SII. In this scenario, it would be if Bob owned the property and Sue got it in the divorce.
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#2215059 - 06/05/19 08:37 PM Re: Becoming successor in interest through divorce Beth175
deh Offline
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What happens in the case above if Sue gets the property in divorce and Bob was the only one in title and Sue wants to assume the debt in her name?

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#2215070 - 06/05/19 09:42 PM Re: Becoming successor in interest through divorce Beth175
rlcarey Online
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rlcarey
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Galveston, TX
If Sue qualifies and you agree that she can assume the loan, then Bob would quit claim the property to Sue and you would process the assumption. If the loan is not assumable, she would have to qualify for a refinancing.
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#2215192 - 06/06/19 09:15 PM Re: Becoming successor in interest through divorce Beth175
deh Offline
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I was hoping that was the answer. I was researching other types of SII when deed transfers either before or at death of title holder..

I wanted to ensure that this type of SII, transfer after death of the borrower, where the successor wishes to assume the debt is not a normal assumption with ATR.. Per the CFPB 12 CFR Part 1026 relating to the ATR states in these situations where the addition or substitution of the SII as the obligor is not an assumption and therefore is not subject to the ATR. This is then a safe harbor under section 130(f) of TILA.

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