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    3 Replies Latest reply on Feb 15, 2008 7:42 PM by England

    Assuming mortgage?

    verse2101 Wayfarer
      How do I go about assuming a person's mortgage?
        • Re: Assuming mortgage?
          DomainDiva Ranger
          Assuming a mortgage is not automatic. The mortgage instrument has to be "assumable". That is determined when the mortgage is taken out by the newest/first purchaser.

          You will need to have the homeowner contact the lending holding the paper. The lender will then tell you if the mortgage can be assumed.

          If the homeowner is in foreclosure/or in danger of losing the home and wants you to 'assume payments' you will need to be very careful. Assuming payments does not let the homeowner 'off the hook' as far as liability for the mortgage goes.
          • Re: Assuming mortgage?
            LUCKIEST Guide

            Step 1:
            Find a property you would like to buy that has an assumable mortgage.

             


            Step 2:
            Get a copy of the loan papers (note) from the seller to see exactly
            what the terms of the loan are.

             


            Step 3:
            Contact the lender that currently holds the loan and ask for an
            assumption package.
            This package will contain all of the information
            required to assume the loan.

             

            Step 4:
            Review the requirements for loan assumption.

             

            Step 5:
            Consider the difference between the loan amount you're assuming and the
            selling price of the property.

             

            Step 6:
            Provide the lender with the required documentation