What we verified in “Divorce, separation or a death: who keeps the house”

Statements and where we checked them

The statements with rules, figures or dates, with the exact place in the source and the date we checked them.

1. Under the federal Garn-St Germain law (12 U.S.C. §1701j-3), a due-on-sale clause is a contract provision that lets the lender, at its option, declare the whole debt due if all or part of the property, or an interest in it, is sold or transferred without the lender's prior written consent; and under §1701j-3(d), for a loan secured by residential property with fewer than five dwelling units (including a cooperative unit and a manufactured home), the lender may not exercise its due-on-sale clause upon, among others: a transfer by devise, descent or operation of law on the death of a joint tenant or tenant by the entirety; a transfer to a relative resulting from the death of a borrower; a transfer where the spouse or children of the borrower become an owner; a transfer resulting from a decree of dissolution of marriage, a legal separation agreement or an incidental property settlement agreement by which the borrower's spouse becomes an owner; or a transfer into an inter vivos trust in which the borrower is and remains a beneficiary and which does not transfer rights of occupancy.

   Sources 1 · 12 U.S.C. §1701j-3(a)(1): 'the term “due-on-sale clause” means a contract provision which authorizes a lender, at its option, to declare due and payable sums secured by the lender’s security instrument if all or any part of the property, or an interest therein, securing the real property loan is sold or transferred without the lender’s prior written consent'; §1701j-3(d), 'Exemption of specified transfers or dispositions': 'a real property loan secured by a lien on residential real property containing less than five dwelling units'; 'or on a residential manufactured home, a lender may not exercise its option pursuant to a due-on-sale clause upon'; '(3) a transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety'; '(5) a transfer to a relative resulting from the death of a borrower'; '(6) a transfer where the spouse or children of the borrower become an owner of the property'; '(7) a transfer resulting from a decree of a dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement, by which the spouse of the borrower becomes an owner of the property'; '(8) a transfer into an inter vivos trust in which the borrower is and remains a beneficiary' · Checked October 31, 2026

2. Under the federal regulation implementing that law (12 CFR §191.5(b)), for a loan secured by a home occupied or to be occupied by the borrower, the lender may not exercise the due-on-sale clause (except on a reverse mortgage) upon a transfer to a relative resulting from the borrower's death, a transfer where the spouse or children become owners, or a transfer by divorce decree, legal separation agreement or property settlement by which the spouse becomes an owner, provided the person receiving the home occupies or will occupy it; and nothing stops the lender from enforcing the clause if a later event disqualifies the exception.

   Sources 2 · 12 CFR §191.5(b)(1) and (b)(5): 'With respect to any loan on the security of a home occupied or to be occupied by the borrower'; 'A lender shall not (except with regard to a reverse mortgage) exercise its option pursuant to a due-on-sale clause upon'; '(v) A transfer, in which the transferee is a person who occupies or will occupy the property, which is'; '(A) A transfer to a relative resulting from the death of the borrower'; '(B) A transfer where the spouse or child(ren) becomes an owner of the property'; '(C) A transfer resulting from a decree of dissolution of marriage, legal separation agreement, or from an incidental property settlement agreement by which the spouse becomes an owner of the property'; '(5) Nothing in paragraph (b)(1) of this section shall be construed to restrict a lender's right to enforce a due-on-sale clause upon the subsequent occurrence of any event which disqualifies a transfer' · Checked October 31, 2026

3. Under Regulation X (12 CFR §1024.31), a successor in interest is a person to whom a borrower transfers an ownership interest in a property securing a mortgage loan, provided the transfer is: by devise, descent or operation of law on the death of a joint tenant or tenant by the entirety; to a relative resulting from the death of a borrower; one where the borrower's spouse or children become owners; by a divorce decree, legal separation agreement or property settlement by which the spouse becomes an owner; or into an inter vivos trust in which the borrower remains a beneficiary; and a confirmed successor in interest is one whose identity and ownership the servicer has confirmed.

   Sources 3 · 12 CFR §1024.31, definitions: 'Successor in interest means a person to whom an ownership interest in a property securing a mortgage loan subject to this subpart is transferred from a borrower, provided that the transfer is'; '(1) A transfer by devise, descent, or operation of law on the death of a joint tenant or tenant by the entirety'; '(2) A transfer to a relative resulting from the death of a borrower'; '(3) A transfer where the spouse or children of the borrower become an owner of the property'; '(4) A transfer resulting from a decree of a dissolution of marriage, legal separation agreement'; '(5) A transfer into an inter vivos trust'; 'Confirmed successor in interest means a successor in interest once a servicer has confirmed the successor in interest's identity and ownership interest in a property' · Checked October 31, 2026

4. Under Regulation X (12 CFR §1024.30), a confirmed successor in interest is considered a borrower for the escrow account rules and for the mortgage servicing rules in that part of the regulation; those rules, including §§1024.38 through 1024.41, have exemptions, for example for small servicers and reverse mortgages; and the procedures in §§1024.39 through 1024.41 apply only to loans secured by the borrower's principal residence.

   Sources 4 · 12 CFR §1024.30(b)–(d): 'Except as otherwise provided in § 1024.41(j), §§ 1024.38 through 1024.41 of this subpart shall not apply to the following'; 'A servicer that qualifies as a small servicer'; 'A servicer with respect to any reverse mortgage transaction'; 'The procedures set forth in §§ 1024.39 through 1024.41 of this subpart only apply to a mortgage loan that is secured by a property that is a borrower's principal residence'; '(d) Successors in interest. A confirmed successor in interest shall be considered a borrower for purposes of § 1024.17 and this subpart' · Checked October 31, 2026

5. Under Regulation X (12 CFR §1024.38(b)(1)(vi)), the servicer must have policies and procedures so that, on notice of a borrower's death or a transfer of the home, it promptly facilitates communication with potential or confirmed successors; on learning of a potential successor, it promptly determines the documents it needs to confirm the person's identity and ownership and promptly gives the person a description of those documents and of how to submit a written request (with the address); and on receiving the documents, it promptly makes a determination and notifies the person whether it confirmed them, needs more documents (and which ones) or determined they are not a successor.

   Sources 5 · 12 CFR §1024.38(b)(1)(vi)(A)–(C): 'Upon receiving notice of the death of a borrower or of any transfer of the property securing a mortgage loan, promptly facilitate communication with any potential or confirmed successors in interest'; 'promptly determine the documents the servicer reasonably requires to confirm that person's identity and ownership interest in the property and promptly provide to the potential successor in interest a description of those documents and how the person may submit a written request under § 1024.36(i) (including the appropriate address)'; 'Upon the receipt of such documents, promptly make a confirmation determination and promptly notify the person' · Checked October 31, 2026

6. Under Regulation X (12 CFR §1024.36(i)), if a person sends a written request indicating they may be a successor in interest, with the name of the borrower from whom they received the property and information identifying the loan account, the servicer must respond in writing with a description of the documents it reasonably requires to confirm their identity and ownership, and a phone number for further help; if information is missing, it may respond with examples of documents it typically accepts and say what else it needs; and before confirmation it does not have to provide other information, though it must say the person may resubmit the request once confirmed.

   Sources 6 · 12 CFR §1024.36(i)(1)–(3): 'any written request from a person that indicates that the person may be a successor in interest and that includes the name of the transferor borrower'; 'information that enables the servicer to identify the mortgage loan account'; 'a written description of the documents the servicer reasonably requires to confirm the person's identity and ownership interest in the property and contact information, including a telephone number'; 'examples of documents typically accepted to establish identity and ownership interest'; 'prior to confirmation, the servicer is not required to provide any information other than'; 'may resubmit any request for information once confirmed as a successor in interest' · Checked October 31, 2026

7. Under Regulation X (12 CFR §1024.36(c) and (d)), the servicer must acknowledge an information request in writing within five days (excluding legal public holidays, Saturdays and Sundays) and respond no later than 30 days excluding those days, or 10 days if you ask for the identity and contact information of the loan's owner; and it may extend the 30-day deadline by 15 days if it notifies you in writing, with the reason, before the deadline ends.

   Sources 6 · 12 CFR §1024.36(c) and (d)(2): 'Within five days (excluding legal public holidays, Saturdays, and Sundays) of a servicer receiving an information request from a borrower, the servicer shall provide to the borrower a written response acknowledging receipt'; 'Not later than 10 days (excluding legal public holidays, Saturdays, and Sundays) after the servicer receives an information request for the identity of, and address or other relevant contact information for, the owner or assignee'; 'not later than 30 days (excluding legal public holidays, Saturdays, and Sundays)'; 'may extend the time period for responding by an additional 15 days'; 'notifies the borrower of the extension and the reasons for the extension in writing' · Checked October 31, 2026

8. Under Regulation X (12 CFR §1024.32(c)), on confirming you as a successor, the servicer may send you a written notice that must explain that, unless you assume the loan under state law, you are not liable for the mortgage debt and cannot be required to use your assets to pay it, though the lender keeps its security interest in the home and its right to foreclose when the law and the contract allow; that you can receive certain loan notices if you sign and return an acknowledgment form, with no time limit, and that those notices do not make you liable for the debt; and that, whether or not you sign that form, you can submit notices of error and requests for information and request a payoff statement.

   Sources 7 · 12 CFR §1024.32(c)(1)(ii)–(v): 'Unless the successor in interest assumes the mortgage loan obligation under State law, the successor in interest is not liable for the mortgage debt and cannot be required to use the successor in interest's assets to pay the mortgage debt, except that the lender has a security interest in the property and a right to foreclose on the property, when permitted by law and authorized under the mortgage loan contract'; 'must execute and provide to the servicer an acknowledgment form'; 'such notices do not make the successor in interest liable for the mortgage debt'; 'there is no time limit to return the acknowledgment'; 'is entitled to submit notices of error under § 1024.35, requests for information under § 1024.36, and requests for a payoff statement' · Checked October 31, 2026

9. Under Regulation X (12 CFR §1024.41), the servicer may not make the first notice or filing for any judicial or non-judicial foreclosure unless the loan is more than 120 days delinquent, the foreclosure is based on a violation of a due-on-sale clause, or it is joining another lienholder's foreclosure; if you submit a complete loss mitigation application before that first filing, it generally cannot start until the application is resolved; if you submit it after the first filing but more than 37 days before the sale, it generally cannot move for judgment or conduct the sale until it is resolved; and the rule does not require the servicer to give you any specific option.

   Sources 8 · 12 CFR §1024.41(a), (f) and (g): 'Nothing in § 1024.41 imposes a duty on a servicer to provide any borrower with any specific loss mitigation option'; 'A servicer shall not make the first notice or filing required by applicable law for any judicial or non-judicial foreclosure process unless'; 'A borrower's mortgage loan obligation is more than 120 days delinquent'; 'The foreclosure is based on a borrower's violation of a due-on-sale clause'; 'The servicer is joining the foreclosure action of a superior or subordinate lienholder'; 'If a borrower submits a complete loss mitigation application during the pre-foreclosure review period'; 'after a servicer has made the first notice or filing'; 'but more than 37 days before a foreclosure sale, a servicer shall not move for foreclosure judgment or order of sale, or conduct a foreclosure sale, unless' · Checked October 31, 2026

10. According to the CFPB, if you inherited a home, inform the loan servicer, the company that sends the monthly statement; to get account information you may need to show proof of your right to the home, such as a copy of the executed will and the death certificate, or a letter from the executor of the estate; the servicer should tell you what proof it needs; the proof you can get may vary by state; you can ask how to keep making payments or how to seek a loan modification; and you can consult an attorney or a housing counselor, or call the HOPE Hotline at (888) 995-4673.

    Sources 9 · How do I get mortgage information about a home I inherited? (reviewed September 11, 2024): 'You should inform the loan servicer if you’ve inherited a home from someone'; 'The mortgage servicer is the company that sends the monthly mortgage statement'; 'that proof might include a copy of the executed will and the death certificate or a letter from the executor of the deceased person’s estate'; 'The mortgage servicer should tell you what kind of proof it needs'; 'The proof that you can get may vary from state to state'; 'how you can continue making payments on the loan or how you can seek a loan modification'; 'consult an attorney or a housing counselor'; '(888) 995-HOPE (4673)' · Checked October 31, 2026

11. According to the CFPB, if you already have title to the house, its rules do not require the lender or servicer to evaluate your ability to repay before letting you take over the loan; common ways to get title include inheritance, legal separation or divorce, a transfer to a living trust, a transfer from parents to children before the parent dies, joint tenancy with right of survivorship and other family transfers.

    Sources 10 · I recently inherited a house. The mortgage lender said it's required to determine my 'ability to repay' before it will let me take over the mortgage loan. Is this true? (reviewed February 2, 2024): 'If you already have title to the house, the CFPB’s rules don’t require the lender or servicer to determine your ability to repay before it lets you take over the mortgage loan'; 'Inheritance'; 'Legal separation or divorce'; 'Transfers to living trusts'; 'Transfers from parents to children before the parent dies'; 'Joint Tenancy with Right of Survivorship'; 'Other family-related transfers' · Checked October 31, 2026

12. According to the CFPB, divorce changes the relationship between spouses but does not automatically change their relationship with creditors: a divorce decree or property settlement may allocate debts to one spouse, but a creditor can still collect from anyone whose name appears as a borrower; while state laws vary, you are generally responsible for a debt unless the creditor contractually released you or your former spouse refinanced and removed your name, including on a mortgage; taking your name off a home title does not take it off the mortgage, and sending creditors a copy of your divorce decree does not end your responsibility on a joint account.

    Sources 11 · Can a debt collector contact me about a debt after a divorce? (reviewed April 14, 2023): 'Divorce changes the relationship between spouses, but it doesn’t automatically change their relationship with creditors'; 'A divorce decree or property settlement may allocate debts to a specific spouse, but it doesn’t change the fact that a creditor can still collect from anyone whose name appears as a borrower'; 'you are generally responsible for a debt unless you were contractually released by the creditor or your former spouse refinanced the loan and removed your name'; 'mortgage loans'; 'taking your name off a home or vehicle title doesn’t take your name off the mortgage or auto loan'; 'sending creditors a copy of your divorce decree doesn’t end your responsibility on a joint account' · Checked October 31, 2026

13. According to the CFPB, housing counselors throughout the country can advise on buying a home, renting, defaults, forbearances, foreclosures and credit issues, and can offer independent advice, often at little or no cost.

    Sources 12 · Find a Housing Counselor: 'Housing counselors throughout the country can provide advice on buying a home, renting, defaults, forbearances, foreclosures, and credit issues'; 'they can offer independent advice, often at little or no cost to you' · Checked October 31, 2026

14. According to the Legal Services Corporation (LSC), it is an independent nonprofit established by Congress to fund civil legal aid for low-income Americans, it funds organizations in every state, the District of Columbia and the territories, and on its website you enter an address or city to find the nearest organization.

    Sources 13 · I Need Legal Help: 'LSC is an independent nonprofit established by Congress in 1974 to provide financial support for civil legal aid to low-income Americans'; 'in every state, the District of Columbia, and U.S. Territories'; 'enter an address or city below to find an LSC-funded legal aid organization near you' · Checked October 31, 2026