Sarahs conclusion:

Barring anything to the contrary in Florida law, which I have

not yet been able to find, it seems to me that Federal law
protects people in this exact situation. This is of course all
contingent upon the original contract being upheld by both
sides, but it seems to me that provided we go through
proper channels to ensure Cait and I inherit the home (and
the mortgage contract) and continue to hold up our end
of the bargain (because as soon as we inherit, it BECOMES
our bargain, too) that it is illegal to call the loan due, or
require more of us (such as better creditworthiness or even
ability to pay) UNTIL we lapse in our adherence to the
contract.
I also think it would be very beneficial to secure private
financing if possible and create our own contract I
absolutely agree that a $55k max risk on a piece of property
worth at least three times that would be a hell of a deal
and for Cait and me, wed be able to reduce monthly
payment, possibly reduce interest rate, and dealing with
someone who cares about you is preferable in any
circumstance that may arise.
But provided Caitlyn was able to make a smooth transfer
down here and all of us were working together, I believe that
even if no private financing is possible, we could make this
work. Were both willing and able to do what it takes.
I believe that what we need to look into creating for you is a
Living Trust. This would leave you in control of all your
assets as long as you are able to administer them, but would
be an automatic transfer of your property and assets as you
choose to distribute them when the time comes. A pourover will can be included in this, including all the regular
items usually found in a Last Will and Testament, but also
ensuring that all properties NOT already involved in the trust
go into the trust upon your passing.
Rather than dealing with adding our names to the deed now,
this is another way to ensure a smooth changeover of
property ownership. The benefit to creating a trust as
opposed to simply adding names to the deed is that

no asset inside the trust can be seized to cover the

debts of the deceased. Ill collect info on this and send in
a separate email.

The clause in your mortgage contract that has been

the source of our concern:
THIS IS A PURCHASE MONEY MORTGAGE.
IF THE MORTGAGOR SHOULD CONVEY THE
PROPERTY, OR ANY INTEREST THEREIN TO ANY
OTHER PARTY, WITHOUT FIRST OBTAINING WRITTEN
CONSENT FROM THE MORTGAGEE, THE ENTIRE
PRINCIPAL AND INTEREST THEREON, AND ANY
PAYMENTS WHICH MAY HAVE BEEN MADE BY THE
MORTGAGEE FOR REPAIRS, INSURANCE, TAXES,
ASSESSMENTS, COSTS, CHARGES, EXPENSES,
ABSTRACT FEES, ATTORNEYS' FEES, OR OTHERWISE,
SHALL AT THE OPTION OF THE MORTGAGEE BECOME
IMMEDIATELY DUE AND PAYABLE WITHOUT FURTHER
NOTICE, AND THIS MORTGAGE MAY BE FORECLOSED
IN THE SAME MANNER AND WITH THE SAME EFFECT
AS IF EACH AND EVERY OF THE SAID INDEBTEDNESS
HAD OTHERWISE MATURED.
The Federal law that applies to our situation:
12 USC 1701j-3 Preemption of due-on-sale
prohibitions
http://uscode.house.gov/view.xhtml?
req=granuleid:USC-prelim-title12-section1701j3&num=0&edition=prelim
The pertinent parts of the US Code:
12 USC 1701j-3 (b)(2)

Except as otherwise provided in subsection (d), the

exercise by the lender of its option pursuant to such
a clause shall be exclusively governed by the terms
of the loan contract, and all rights and remedies of
the lender and the borrower shall be fixed and
governed by the contract.
12 USC 1701j-3 (d) [Were looking at (d) (3,5,6)]
Exemption of specified transfers or
dispositions
With respect to a real property loan secured by a lien
on residential real property containing less than five
dwelling units, including a lien on the stock allocated
to a dwelling unit in a cooperative housing
corporation, or on a residential manufactured home,
a lender may not exercise its option pursuant to a
due-on-sale clause upon(1) the creation of a lien or other encumbrance
subordinate to the lender's security instrument which
does not relate to a transfer of rights of occupancy in
the property;
(2) the creation of a purchase money security
interest for household appliances;
(3) a transfer by devise, descent, or operation
of law on the death of a joint tenant or tenant
by the entirety;
(4) the granting of a leasehold interest of three years
or less not containing an option to purchase;
(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 and which
does not relate to a transfer of rights of occupancy in
the property; or
(9) any other transfer or disposition described in
regulations prescribed by the Federal Home Loan
Bank Board.
12 USC 1701j-3 (2)(A)
For any contract to which subsection (b) does not
apply pursuant to this subsection, a lender may
require any successor or transferee of the borrower
to meet customary credit standards applied to loans
secured by similar property, and the lender may
declare the loan due and payable pursuant to the
terms of the contract upon transfer to any successor
or transferee of the borrower who fails to meet such
customary credit standards.
If I am reading this correctly, the lender may NOT
require any successor or transferee of the borrower
to meet customary credit standards and CANNOT
declare the loan due and payable under the contract
due to a less than desirable credit rating of the
successor/transferee BECAUSE subsection (b) applies
to us.