Q: Can divorce-awarded house qualify for refinancing under Garn St. Germain Act in SC?

A: Garn-St. Germain Act Protection for Divorce Property Transfers

Yes, the Garn-St. Germain Depository Institutions Act can be highly beneficial in your situation as someone awarded a house in a South Carolina divorce settlement. This federal law specifically protects transfers resulting from divorce settlements from triggering due-on-sale clauses in mortgage contracts, which would otherwise allow lenders to demand immediate full payment when property ownership changes. Elder-law

When you were awarded the marital home and ownership transferred to you while leaving the current mortgage intact, this falls under the protections of the Garn-St. Germain Act. Many homeowners in your situation follow a formal assumption process, which allows you to take responsibility for the mortgage while keeping the loan intact at the same interest rate, terms, and balance. Divorcelendingassociation

To proceed with a formal mortgage assumption, you'll need to notify your mortgage servicer in writing about the divorce decree and your intent to assume the mortgage. This is typically done through a "Garn-St. Germain Act Assumption Notice" informing them of the court-ordered property transfer and your assumption of payment responsibilities. Divorcelendingassociation Working with a mortgage professional familiar with post-divorce financing options might significantly improve your chances of successfully navigating the refinancing process, as they can help ensure your documentation properly references the federal protections that apply in your case. Many lenders have specific departments that handle these situations, so asking to speak with someone experienced in divorce-related mortgage assumptions could help overcome the difficulties you're currently facing.