Dear Liz: My dad set up a living trust that included his house, which has a mortgage on it. The lender accepted the transfer of the home to the trust. Dad recently passed away so the house should transfer to my sister and myself. Can the lender trigger the due-on-sale clause? Or make me or my sister qualify for the mortgage?
Answer: A federal law known as the Garn-St. Germain Depository Institutions Act of 1982 details several situations in which lenders can’t enforce due-on-sale clauses, including when a home passes to a relative or joint tenant, said Jennifer Sawday, an estate planning attorney in Long Beach. The law applies to residential properties with four or fewer dwelling units.
You and your sister won’t have to qualify for a new loan but can continue making payments under the current mortgage terms. If you can’t afford the payments, you’ll need to consider other options, such as refinancing or selling the home.
Today’s top story: If you need to find tax help, try DIY first. Also in the news: Can you still buy a used rental car at a bargain, the mortgage outlook for April, and when to expect your delayed stimulus check if you’re a Social Security recipient.
Today’s top story: Spring travel ahead? One airline is prioritizing customer safety. Also in the news: Considering elite airline status in 2021, taking some of the mystery out of buying a house sight unseen, and how to build your credit without a credit card. 
Today’s top story: How to pick the right credit card for a major purchase. Also in the news: How to adjust your credit card strategy for 2021 travel, three factors to consider (and one to ignore) when choosing investment funds, and how you can deduct masks as a medical expense on your taxes.