Posted on: 30th Dec, 2007 12:31 pm
I have a friend that is 3 to 4 months behind on his mortgage. He has an assumable mortgage. Can you assume the mortgage and have the owner removed from all obligation? My plan is to assume the mortgage, make improvements to the house and then sell it. Can I sell the property as if it were mine even if the original owners were not relieved of their obligation to the lender?
I doubt the lender will allow an assumption when the mortgage is in arrears....espicially if there is equity in the property.......The lender has to approve the assumption........if they do approve it then of course the house is yours to do what you wish.......
Hello Campbell,
I think the mortgage payments have to be made regular first and only then the lender might give his consent to an assumption. You should talk to the lender first.
The original owners may sell their property and pay off the mortgage and you may help them in doing that. But the title of the property should not be transferred to you without the lender's consent because the lender might call the entire mortgage balance due immediately if there's a change of ownership.
I think the mortgage payments have to be made regular first and only then the lender might give his consent to an assumption. You should talk to the lender first.
The original owners may sell their property and pay off the mortgage and you may help them in doing that. But the title of the property should not be transferred to you without the lender's consent because the lender might call the entire mortgage balance due immediately if there's a change of ownership.
The owners are relieved from their financial obligation when the mortgage is assumed. The title is transfered at that time to the new owner. It's just like purchasing a home but without having to get a new mortgage. I would definately look into this option.