Posted on: 30th May, 2006 08:18 pm
I sold a property with a simple assumtion to my buyer. The loan is going into foreclosure. How can I redeem this mortgage and get a deed for the property? Would my only recourse be in a civil law suit against the buyer (after paying the balance due + costs)?
Hi ohshirlee,
I think to suit a case in civil court against the buyer is the only way that you can take.
I think to suit a case in civil court against the buyer is the only way that you can take.
Hi ohshirlee,
"Would my only recourse be in a civil law suit against the buyer (after paying the balance due + costs)?"
File a case against the buyer is not only the solution.
Upon the default of the mortgage, the mortgagee shall take one of the following actions within 9 months from the date of default:
Thanks
"Would my only recourse be in a civil law suit against the buyer (after paying the balance due + costs)?"
File a case against the buyer is not only the solution.
Upon the default of the mortgage, the mortgagee shall take one of the following actions within 9 months from the date of default:
- Obtain a deed in lieu of foreclosure with the title being taken in the name of the mortgagee.
- Commence foreclosure.
- Enter into a forbearance agreement. To know more about forbearance agreement, go through the article "Avoiding Foreclosure through Forbearance".
- File a partial claim on the mortgage.
- Initiate a pre-foreclosure sale of the mortgaged property.
- Complete a modification or refinance or an assumption of the mortgage under different section of Laws. To more on this, consult with an attorney.
Thanks
HOW DOES SIMPLE ASSUMPTION WORK. I WANT TO SELL MY HOUSE TO MY SISTER. IS THIS A GOOD WAY TO DO IT SINCE SHE HAS BAD CREDIT.
Hi Joe,
Simple assumption is transfer of property having mortgage from one owner to another. It's known as "simple" as it requires only few documents to be signed while transferring ownership. For example, the death or divorce of a co-borrower and the borrower willing to remove the co-borrower's name from the loan. In a simple assumption, the liability of paying down the home loan isn't transferred; the borrower is still liable in case the new owner is not able to carry on with the payments.
With a simple assumption, you can sell the home to your sister as she has bad credit. This is because generally in this kind of assumption, the buyer or the new owner need not give details about his income and credit profile.
However, this may vary from lender to lender. One lender may be willing to ignore such details as the ultimate liability of paying off the loan remains with the original owner. But then, there can be other lenders who are willing to gather information about the would be owner's income and credit before allowing him to assume the loan.
But remember one thing, there should be an assumption clause stated on the loan document right from the very beginning when you were offered the loan.
To know more about this topic, go through How assumption Clause allows seller to transfer loan and an earlier discussion on Simple assumption of loan.
Thanks
Simple assumption is transfer of property having mortgage from one owner to another. It's known as "simple" as it requires only few documents to be signed while transferring ownership. For example, the death or divorce of a co-borrower and the borrower willing to remove the co-borrower's name from the loan. In a simple assumption, the liability of paying down the home loan isn't transferred; the borrower is still liable in case the new owner is not able to carry on with the payments.
With a simple assumption, you can sell the home to your sister as she has bad credit. This is because generally in this kind of assumption, the buyer or the new owner need not give details about his income and credit profile.
However, this may vary from lender to lender. One lender may be willing to ignore such details as the ultimate liability of paying off the loan remains with the original owner. But then, there can be other lenders who are willing to gather information about the would be owner's income and credit before allowing him to assume the loan.
But remember one thing, there should be an assumption clause stated on the loan document right from the very beginning when you were offered the loan.
To know more about this topic, go through How assumption Clause allows seller to transfer loan and an earlier discussion on Simple assumption of loan.
Thanks
Where do I begin looking for an assumption property in Fort Washington, Bowie, or Upper Marlboro
Hi Kim,
I guess you have to talk to some local real estate agents who deal with assumption properties.
Take Care
I guess you have to talk to some local real estate agents who deal with assumption properties.
Take Care
to joe - selling your home to your sister with "bad credit" and allowing her to assume your current mortgage is not a wise move. when a new buyer assumes a mortgage on a home, the original borrower on that mortgage is obligated to make payments as well.
assumptions are very risky business - at the very least you ought to beware since you stated clearly that your sister has bad credit. what makes you think she will be able to make payments? has she redeemed herself from that bad credit? be very wary of this transaction.
assumptions are very risky business - at the very least you ought to beware since you stated clearly that your sister has bad credit. what makes you think she will be able to make payments? has she redeemed herself from that bad credit? be very wary of this transaction.
I have an assumable property in Bowie, MD
@ Kim Queen....The assumption property i am talking about will be posted this week on homedatabase.com and it is in Bowie, MD. It will be a formal assumption, not a simple assumption. So you will still have to qualify for the loan. Keep a look out for the 20721 zip code assumption coming this week. It will be a great deal for whoever gets it.
tia, it may not make much difference for kim queen; that post up there was dated in february of 2008.
do anyone have any idea where i can start my search? or any more detail information on this type of transation....Looking for a new start yes i did the bankrupt after a divorice. and would love to stay in new orleans area.
Hi Harvey,
"any more detail information on this type of transation....Looking for a new start yes i did the bankrupt after a divorice. and would love to stay in new orleans area."
Can you clarify your situation? Would you like to assume a mortgage?
Generally, through a simple assumption one can take over the responsibility of the mortgage payments. But the name of the original borrower cannot be removed from the mortgage through a simple assumption. The original borrower still remains responsible for the mortgage. In case the person, who assumes the mortgage, defaults on the loan, the original borrower will have be held responsible.
"any more detail information on this type of transation....Looking for a new start yes i did the bankrupt after a divorice. and would love to stay in new orleans area."
Can you clarify your situation? Would you like to assume a mortgage?
Generally, through a simple assumption one can take over the responsibility of the mortgage payments. But the name of the original borrower cannot be removed from the mortgage through a simple assumption. The original borrower still remains responsible for the mortgage. In case the person, who assumes the mortgage, defaults on the loan, the original borrower will have be held responsible.
harvey, i am confused, just as jenkin7 is confused. what do you seek? if you're looking for an assumable loan, the only way to search for that is to find a seller who's open to that suggestion. i don't know if realtors down that way are aware of sellers with assumable loans, but that's one place you might begin your search.
then again, is that what you're after?
then again, is that what you're after?
in case you want to know...yes, this post is mine:
harvey, i am confused, just as jenkin7 is confused. what do you seek? if you're looking for an assumable loan, the only way to search for that is to find a seller who's open to that suggestion. i don't know if realtors down that way are aware of sellers with assumable loans, but that's one place you might begin your search.
then again, is that what you're after?
harvey, i am confused, just as jenkin7 is confused. what do you seek? if you're looking for an assumable loan, the only way to search for that is to find a seller who's open to that suggestion. i don't know if realtors down that way are aware of sellers with assumable loans, but that's one place you might begin your search.
then again, is that what you're after?