SIMPLE ASSUMPTION OF A LOAN

Can someone tell me how long the assumption process should take? I have a loan with Bank of America, and I sent in the requisite paperwork (and payment!) in October -- it's now four months later and they are still giving me the run around saying their paperwork is "backlogged." In fact, they told me my paperwork I previsouly sent in is now EXPIRED and I have to submit it again. This seems totally bogus, please help!!

Hi Holly,

I understand how frustrating the situation has been for you. But this is what the banks are doing. They are taking months to review your situation and take a decision. Be it a loan modification or a simple assumption, borrowers are being made to wait for months before their request is either accepted or denied. In fact, with the huge number of foreclosures, short sales and modifications taking place, the banks are having a hard time to review all the paperwork. There is no specific time within which the assumption should take place. It depends on your bank and you have to wait till the time they give their decision.

the shame of it is that those banks that are severely up against the wall in terms of decision-making are also not in a financial position to add on the staffing that they obviously so sorely need to assist them with the influx of requests.
they'd be able to reduce unemployment lines drastically if they sought out enough folk to help them through this mess.

i think that's what banks are up to. they want more unemployed people thus enabling them to make offers that are hard to resist. still, do't be frustrated because waiting could also mean a good thing for you.

My 3 sisters and I are all on the title of a house together. There is a contract in place that a force of sale can not be made for 10 more years. One sister would like to take out a loan on her portion of the property. She wants us to sign papers allowing the bank to have their name on the title. What are the liabilities to us if she is to default on the loan?

autumn i have to disagree with your theory about the banks wanting more unemployed people. that does no good for anyone (corporate or individual) when unemployment lines are long. and, of course, waiting is always frustrating, particularly when you don't know what's happening due to a lack of contact. but, excessive worrying is a waste of time too, so you're right about the need for patience.

lilly, when a person is the owner of real estate, whether alone or with others, there's no such thing as borrowing and creating a lien on that person's portion of the home. the entire piece of real estate is subject to the mortgage, and everyone who is on title who may sign on that loan is subject to all the terms of the loan. if you two sisters who aren't borrowing are only being requested to sign the mortgage, and not the loan, then you'd be obligated on the covenants in the mortgage but not on the loan. that, however, does not help if she were to default, as the lender would seek the remedy of foreclosure, which would get you intimately involved.

I have a loan on one of my places, I have put my daughter on the paperwork through a simple assumption. The cost was $100.00, I now want to put my grandson (her son) on also, now I'm told I have to pay $600.00 as opposed to $100.00, he is 22 and has a job, and lives in the residence, what valid reason is there for that? I asked bank that, they weren't able to tell me.
thanks
Mavis

they certainly ought to be able to tell you what has transpired that now costs $600 as opposed to $100. of course, they may have been inundated with requests for assumptions and found it convenient to take advantage of this and make a tidy profit. or else, they discovered that they were getting too many inquiries and figured that a larger fee would dissaude folk from requesting assumptions.

it would certainly be nice if they'd just level with you and let you in on the secret.

one thing that you didn't mention may be key: how long ago did you add your daughter? it may simply be a function of time elapsed since you last did this.

My grandmother owned our house about 40 years ago, my fater and mother did an assumption of mortgage from my grandmother about 25 years ago without releasing liability of my grandmother. During this time with out anyone knowing my grandmother deeded her "portion" of the house to my cousin. Did she have the legal rights to do this?

if your grandmother owned the home, she had every right to do what she pleased with the home.

My Mom passed and I am on title, the mortgage company has offered me a assumption loan, will I get credit for my payments from the time I take over and will I assume the loan history from the past??

you'll certainly get credit from now on; i'd have a hard time understanding why they'd give you credit for the past history, to which you didn't contribute. that would be an unreasonable expectation.

Thanks so much for your prompt answer :)
Is there anything in particular that I should be wary of from the lender? They have sent me paperwork for the assumption that requires my deceased mothers signature,because of her being the seller. I called them and the rep said to sign it then next to her signature just sign "signed by me"
this sounds funny to me?

Hi Dina,

I'm not sure what why they need your deceased mother's signature. I don't think you should sign in the place where it requires your mother's signature. It sounds somewhat odd that the representative told you to sign it and then write "signed by me" next to the signature. You need to talk to someone who actually knows what to do in this situation. What the representative suggested does not sound logical.

the foolishness of the person who advised you to sign your deceased mother's signature and to add "signed by me" is unparallelled. by all means, do not do it. jenkin7's comment that you need to "talk to someone who actually knows what to do" is right on. by all means, you need to escalate your conversations with these people to someone with a modicum of sense.