The term “successor in interest” is a legal term that applies to a lot of different areas…product liability, labor law, employment law, contracts and, of course, real estate. Under both Regulation Z and RESPA, a successor in interest is generally a person that receives an ownership interest in a dwelling (under Regulation Z) or residential real property (under RESPA) that secures a closed-end loan via some type of transfer. This could arise when a relative inherits property after the death of the owner; assignment of property interests during a divorce; or there could be some other type of legal proceeding that creates a property interest like the dissolution of a trust. The point is, there are plenty of ways a successor in interest scenario could be created. The real trick is recognizing them and knowing what to do when you have one! There are two types of successors in interest…potential and confirmed.
Kevin explains more in the video.
Published
2025/07/25
