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Can a bank "call" my home loan after I die, even if I've left my home to my friend as trustee, executor and heir?

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While I'm alive, I cannot put my friend on my deed, as that will trigger a loan call or acceleration clause, or so I've been warned could potentially cause a call or acceleration (especially if interest rates go up). My loan payments have never been late, and I'm not facing any credit problems. So as long as I'm in good standing on my home loan, I should think that the bank will not attempt to call or accelerate my loan after my death? My friend is named as sole heir, trustee and executor to my home and he will have the legal duty to administrate my loan. For this I would like to literally and figuratively rest in peace after I die, knowing if he is protected from the bank calling the loan so long as he continues to make all the payments on time? Thank you

4 Attorney Answers

Best Answer
Why not ask the bank their policy on this issue and see if they will work with you to accomplish your goal.
I think they would have the right to "call" the loan.
Sometimes if the payments are made -the banks takes no action.
You should contact an attorney in your area to make sure it can transfer the way you want. Check Avvo for a local attorney. Good luck.
I believe that it would be legal for the bank to demand repayment if you were to pass away. There are specific exemptions for transfers at death to family members (see http://www.fdic.gov/regulations/laws/rules/8000-8300.html and http://www.washingtonpost.com/wp-dyn/content/article/2010/02/11/AR2010021105365.html) but a transfer to a non-relative at death is not one of the permissible transactions.
Yes they can - as they have a lien for an unpaid debt. Hopefully you have Mortgage Protection Life Insurance in place to pay off the loan at your death.

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