2007-02-23 06:21:26 · 7 answers · asked by Rickey S 1 in Business & Finance ➔ Renting & Real Estate
Investors love this situation. Why? Because they leave the loan in your name rent out the place. If they are legit they make
the payment. If they aren't you can end up with a horrible situation where they can make money by collecting rent and allowing the home to go into foreclosure on your credit.
I would personally Never hand over my house unless I was compltely removed from any liability from the home (the mortgage)
2007-02-23 19:01:12 · answer #1 · answered by The Loan Professor 1 · 0⤊ 0⤋
Depending on what you want to accomplish the answer might be 'no' while you can still get done what you want to.
1. The mortgage is very likely not to be assumable without the lender qualifying the new borrower.
2. Many investors will take over the payment if you need out. You would legally still be on the mortgage no matter what they tell you. It can be a good deal but it is not signing over the mortgage . If they miss a payment you take the hit on your credit. They will want you to sign over title to the property which leaves you with the debt but no asset to sell if needed to pay off the debt.
There are good and bad ways to set up a deal where someone else is agreeing to make the payments. The best way for you might not be the best way for the lender.
2007-02-26 05:55:57 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Maybe, maybe not. Read your mortgage contract and see what it says about assignment. In past years, mortgages were commonly assignable without qualification by the lender.
Following the Savings & Loan scandal of the 1980s, lenders were generally required to limit the assignment of loans to qualified borrowers only.
Virtually all mortgages written in the past 25 years either bar assignment outright or restrict it to purchasers who meet the lender's standard underwriting criteria and who are approved by the lender.
If you sell a mortgaged property to an unqualified individual, the lender may exercise the "Due on Sale" clause in the mortgage contract and force the sale of the property. You, as the original signer of the contract, could be held fully liable for any losses suffered by the lender.
2007-02-23 14:41:44 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 0⤋
An assumable mortgage is possible, but the person to whom you "sign over' the mortgage to must be credit worthy. The must pass a credit check just as if they were applying for (and essentially they are) their own mortgage. Your mortgage company will tell you particulars, but don't count on it.
Perhaps you can rent to this person, with a full legal, notarized lease instead. (just a thought)
2007-02-23 14:30:02 · answer #4 · answered by Enchanted 7 · 0⤊ 0⤋
VERY rarely. It's called an assumable mortgage and they are almost never done these days. Just call your mortgage co an ask if your mortgage is assumable.
2007-02-23 14:27:46 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Not unless the other person can qualify for the loan. They can assume the loan but the lending company is going to make them apply for the loan just like any other new loan.
2007-02-23 14:28:45 · answer #6 · answered by Faye H 6 · 0⤊ 0⤋
Most investors, like myself, would be happy to take over a loan from you. email me, I'll give you the details. You just need to find a real estate investor to help you out.
2007-02-23 21:11:30 · answer #7 · answered by Jilli Bean 5 · 0⤊ 0⤋