Mortgage Application

Can a girlfriend take over a boyfriend’s mortgage?

By Christopher Combs | February 11, 2018

Question: You had a recent column about a daughter not having to pay off the mortgage on a Phoenix home she inherited from her mother. You said that the daughter could just continue to make the monthly payments, even though there was a due-on-sale clause in the mortgage requiring immediate payment of the entire amount of the mortgage upon any transfer of the home. Here is my question: My boyfriend and I live in a home in Goodyear. Because of my bad credit, the deed and the $180,000 mortgage are both only in my boyfriend’s name. The $180,000 mortgage has…

Transferring a Mortgage

Transferring a Mortgage after Death of Parent

By Christopher Combs | October 16, 2017

Transferring a Mortgage after Death of Parent   Question: In a recent column you wrote about a mother being able to transfer her Sun City home to her daughter either by beneficiary deed or by a small probate affidavit. If there is a mortgage on the Sun City home at the time of the mother’s death, will the daughter have to pay off the mortgage immediately?   Answer: Probably not. Although most mortgages have a standard due-on-sale clause that requires the mortgage balance to be paid off immediately upon any transfer of the home, most mortgages are governed by federal…


Husband and Wife Must Both Sign HELOC

By Christopher Combs | April 30, 2017

Husband and Wife Must Both Sign HELOC   Question:  We have owned our Sunnyslope home as community property with right of survivorship for almost 20 years. The original mortgage is in the name of myself and my wife. We borrowed $100,000 on a home equity line of credit (HELOC) ten years ago.  We noticed recently that the HELOC is only in my name. Is this HELOC legal?   Answer:  Yes. Although the HELOC is legal, the HELOC is not enforceable as a mortgage against the home. The reason is that the signatures of both the husband and the wife are…


What Is a Wrap Around Mortgage?

By Christopher Combs | February 27, 2017

What Is a Wrap Around Mortgage?   Question: My husband recently passed away. I want to sell my Scottsdale condominium and move back to Iowa to be closer to my children. Our home is worth $220,000 and our Wells Fargo mortgage is now only $65,000. My son in Iowa is a real estate broker and says that I should be able to sell my home quickly using a “wrap around” mortgage. When my son tries to explain what a “wrap around” mortgage is, I become confused. Can you tell me what a “wrap around” mortgage is? Would a “wrap around” mortgage…

Mortgage vs. Deed of Trust

Understanding Mortgage vs. Deed of Trust

By Christopher Combs | November 2, 2016

Understanding Mortgage vs. Deed of Trust  Question: In Arizona, a deed of trust can be used as well as a mortgage to secure a loan on a home. Other states use only mortgages. Why does Arizona also have deeds of trust?   Answer: Since 1971 Arizona has had both mortgages and deeds of trust to secure loans on a home (or other real property). Most lenders in Arizona now require a deed of trust rather than a mortgage to secure a loan on a home for two reasons. One, a deed of trust can be foreclosed non-judicially by a trustee’s sale,…

Reverse Mortgage

Reverse Mortgage Obligations

By Christopher Combs | September 20, 2016

Reverse Mortgage Obligations  Question: Six years ago after my father passed away, my mother got a reverse mortgage on their Goodyear home. This reverse mortgage paid off their existing mortgage on the home. My mother’s understanding from the loan officer was that she would never have to make another mortgage payment during her lifetime. Last week she received by certified mail a notice that her home is scheduled for foreclosure. My mother is terrified that she is going to lose her home to foreclosure after she was told that she would never have to make any mortgage payments. How can that…


Pre-payment Penalty to Refinance

By Christopher Combs | April 18, 2016

Pre-payment Penalty to Refinance   Question: We refinanced the original loan on our Prescott home to get some extra cash. The documents we signed for the original loan required a 10% pre-payment penalty if we paid off the original loan early. The original loan was $180,000, so when we refinanced we paid the $18,000 pre-payment penalty. Did we have to pay this $18,000 pre-payment penalty under the Dodd-Frank Act? Our accountant said that the Dodd-Frank Act does not prohibit pre payment penalties, but that we are entitled to an income tax deduction for this $18,000 pre-payment penalty. Is our accountant right?…


Seller Financing Disclosure

By Christopher Combs | January 25, 2016

 Seller Financing Disclosure   Question: My father owns his Glendale home free and clear. He is moving next month to go back to Illinois to live with his first wife. My father is going to sell the home now to me, and I will make payments to him at 6% interest for the next ten years. My understanding is that there is a new law that requires my father as a mortgage lender to make all types of disclosures of this loan to me. What are those disclosures? Does my father have to make those disclosures to me?   Answer:…