Have you ever had another person assume the mortgage on the home you currently live in? And were there any problems associated with doing this? I need to get out of my house as soon as possible.
2007-09-11 00:17:14 · 6 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
There are basically two types of assumptions. Formal and informal.
"Formal" is where the buyer assumes the loan but under the provisions of the bank which actually creates a whole new loan.
"Informal" was done mostly by VA and FHA lenders, not too common any more, but do exist. The buyer pays down to the loan amount in order to assume the loan. Seller is stuck with this loan on his credit report until it is paid off. It wasn't such a super idea and these lost their popularity after the 1980s real estate crunch.
So check your mortgage and see if you have an "assumable loan" and go from there. Betcha you don't. You can always sell on a land contract and not have to pay off your mortgage in full until you issue a deed to the new owner. Rent-to-own is also an option nowadays. Contact a good real estate attorney to do the paperwork.
So many people are in the same boat, nationwide...something has to change and fast....
Good Luck!
2007-09-11 00:34:53 · answer #1 · answered by Barbara 5 · 1⤊ 0⤋
They still have to qualify for the loan, the same as they would with any other. It just gives them a better itnerest rate.
If you can't afford your home or are relocating, consider a lease option. They give you something like 3 months deposit when they move in. You agree on a selling price & they have a year to get financing. If they don't, they move out and you get to keep the deposit. If they do buy the house, you just deduct the deposit from your asking price so you're not physically giving the money back to them. They pay rent every month for that year, taking care of the mortgage payment - and then some. You help yourself and someone who is trying to fix their credit at the same time.
2007-09-11 08:28:32 · answer #2 · answered by Roland'sMommy 6 · 1⤊ 0⤋
First off, you need to read your mortgage agreement to see if it is assumable at all. Not all mortgages are. Those that are normally require the buyer to meet the lender's standard qualifications for the loan.
The days of the unqualified assumable mortgage are LONG over. Those died decades ago.
2007-09-11 07:24:54 · answer #3 · answered by Bostonian In MO 7 · 1⤊ 1⤋
Yes, assuming someone's mortgage is possible. It was popular years ago. and is still popular in business/commercial real estate. If you want someone to assume your mortgage you need to read your note and get permission from your bank. In todays market, assuming a mortgage is not a popular option.
2007-09-11 07:24:51 · answer #4 · answered by Lucky Chuck 3 · 1⤊ 0⤋
If the bank will accept the assumption without a complete qualification by the buyer.
IF you are thinking of keeping the mortgage in your name then yes there a myriad of problems associated.
2007-09-11 07:30:25 · answer #5 · answered by Anonymous · 1⤊ 0⤋
I can't tell if you are the person doing the renting or if you are the seller.
2007-09-11 07:25:58 · answer #6 · answered by sophieb 7 · 0⤊ 0⤋