Posted on: 12th Nov, 2005 11:33am
Simple assumption is a process by which a buyer assumes or takes over the seller's mortgage obligation. But this doesn't mean that the seller is release from the liability. That's the reason, simple assumption is also known as transfer with no release of liability.
When you assume a loan and default, the original seller is secondarily responsible for paying off the unpaid balance. And the lender cannot seek a deficiency judgment against the original borrower if he fails to recover the unpaid debt by selling the home.
If you assume your parents' loan, they are not completely released from the liability and hence the loan payments will be reflected in their credit reports and not yours. However, if you default, then your parents' credit report will reflect an outstanding mortgage and it will be difficult for them to seek any other loan.
When you assume a loan and default, the original seller is secondarily responsible for paying off the unpaid balance. And the lender cannot seek a deficiency judgment against the original borrower if he fails to recover the unpaid debt by selling the home.
If you assume your parents' loan, they are not completely released from the liability and hence the loan payments will be reflected in their credit reports and not yours. However, if you default, then your parents' credit report will reflect an outstanding mortgage and it will be difficult for them to seek any other loan.
yes, can u tell me more about simple assumptions and what does it mean transfer with no release of liability? my parents made a mortgage for me to buy a home 4 years ago. i paid the notes. they have passed away and the property and double wide home was willed to me. we done a assumption of the loan with our morgage comp. and lawyer 4 months ago. my main concern right now someone told me that this will not go on my credit. the loan co. says it is only in my name that my parents names have been removed. can you tell me anything about this.I am tring to rebuild my credit and i feel having a mortgage and keeping the payments up will help improve it. is there something i can do? any information would be helful. thank you
my mortgage is in my husband's name only, however both of our names are on the deed. we are getting divorced and he has agreed to give me 100% of the house, but i need to have it all in my name and his name off. i will not qualify to refinance it, but i have made all the payments from my personal acct throughout the whole mortgage. what can i do to get it in only my name and have his name removed? is there an assumption to where it would just change out our names and i get all the credit and it be completely removed from him? i need to get his name completely off in case he ever re-marries. please help.
Hi Shannon,
As far as the property deed is concerned, you will have to ask him to sign a quitclaim deed in your favor and transfer the property to you. You will have to refinance the mortgage in order to remove your husband's name from the mortgage.
I don't think a loan assumption is possible in your case. Loan assumption takes place only if the property, which has loan, is sold to someone else and you want that person to takeover the responsibility of mortgage.
As far as the property deed is concerned, you will have to ask him to sign a quitclaim deed in your favor and transfer the property to you. You will have to refinance the mortgage in order to remove your husband's name from the mortgage.
I don't think a loan assumption is possible in your case. Loan assumption takes place only if the property, which has loan, is sold to someone else and you want that person to takeover the responsibility of mortgage.
The home is in my mother name. She is decesed the mortgage is behind and i would like to assume the mortgage. I still live in the home. How can fix this i do have a job and can pay the monthly payment but not the balloon payment the mortgage company is asking for Help
hi janice!
welcome to forums!
you'll first have to check the mortgage docs to see if the mortgage is assumable or not. if the mortgage company is asking for the balloon payment, then you'll have to give it otherwise i don't think they would let you assume the mortgage. however, you may negotiate with the lender regarding the payments.
if loan assumption is not possible for you, then you can definitely go for refinance. but you should note that you will have to pay the closing costs for refinancing.
feel free to ask if you have further queries.
sussane
welcome to forums!
you'll first have to check the mortgage docs to see if the mortgage is assumable or not. if the mortgage company is asking for the balloon payment, then you'll have to give it otherwise i don't think they would let you assume the mortgage. however, you may negotiate with the lender regarding the payments.
if loan assumption is not possible for you, then you can definitely go for refinance. but you should note that you will have to pay the closing costs for refinancing.
feel free to ask if you have further queries.
sussane
TITLE TO HOUSE IS IN MY NAME BUT THE LOAN IS STILL IN HER NAME WHAT THE HECK DO I DO.
Hi dalaw,
If you are only on the title and not on the loan, you are not responsible for the loan. Your credit cannot be affected in case of a late payment or a foreclosure. But if you want to keep the house, you need to get it refinanced in your name and make the monthly payments regularly.
If you are only on the title and not on the loan, you are not responsible for the loan. Your credit cannot be affected in case of a late payment or a foreclosure. But if you want to keep the house, you need to get it refinanced in your name and make the monthly payments regularly.
We have tried to get a loan modification for our home and have been denied twice by our lender. My name is not on the loan. I was told to look into a simple assumption loan to help lower our payments and interests. I was told that a mortgage or title company would make a loan according to the current appraisal amount and that is how the lower interest rate and lower payment is made. I was also told that your credit history isn't looked at for this type of deal. Is this so? I find it hard to believe but at this point I am willing to try almost anything, with me being the only income, $2400.00 a month is just too much. please help :?
Hi
A simple assumption of the loan is also subject to the lender's approval. If you are to assume the loan, the lender will definitely look into your credit history and income, because unless they are sure of the fact that you'd be able to make the payments they'll not be willing to approve the assumption. You said you've been denied a modification by your lender. But did you ask them why they had denied?
A simple assumption of the loan is also subject to the lender's approval. If you are to assume the loan, the lender will definitely look into your credit history and income, because unless they are sure of the fact that you'd be able to make the payments they'll not be willing to approve the assumption. You said you've been denied a modification by your lender. But did you ask them why they had denied?
what is the process of assumption of a loan.and how fast can it be done?
First you need to find out from the lender whether the loan is assumable
I LIVE IN NEW YORK STATE. MY MOM IS ON THE DEED TO MY HOUSE. I AM RE-FINANCING AND NOW THT HAVE ADDED MY DAD BECAUSE HE IS MARRIED TO MY MOM?? THEY ARE NOT ON THE LOAN ONLY THE DEED? IF I DEFAULT, ARE THEY LIABLE FOR THE MORTGAGE?
Hi
Carol, if your dad and mom are only on the title to the property and not on the loan, they are not liable for the mortgage. Being on the title does not make you responsible for the loan. So, if they haven't signed any loan documents they will be free from its liabilities.
Carol, if your dad and mom are only on the title to the property and not on the loan, they are not liable for the mortgage. Being on the title does not make you responsible for the loan. So, if they haven't signed any loan documents they will be free from its liabilities.
My wife and I are on title to a home in California with our deceased son. Our deceased son is the only one on the loan. There is no Will or Trust. We are tenants in common. Can the lender call our loan? Does the loan pass to us?
Hi
The loan will not pass on to you. If you didn't sign on the mortgage note you'll not be liable for its payments. But if you intend to keep the house you'll need to continue the payments.
The loan will not pass on to you. If you didn't sign on the mortgage note you'll not be liable for its payments. But if you intend to keep the house you'll need to continue the payments.
My boyfriend and I bought a house together. We broke up almost a year ago and both are still living in the house. Every weekend I go back to my home town, in another state. He would like the house but cannot afford it himself and his credit is not good. I want to move back to be near mt family. He will not talk about his option of refinancing or sign off on selling the house, so I am trapped. What are my options. I want my name off of the deed so I can assume my life. Please help me.