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
Hi,
Our parents own a condo with an outstanding mortgage. They have hard time coming up with payments and we want to help them by paying off their mortgage in full(it is not assumable). We also want with their agreement to remove their names from the property title and transfer it to our names.
Is this possible? Will we be full owners of the property if we do that? What happens if only our names are on the title but they mention somebody else's name in their will to inherit a part of this property?
Thanks.
EB.
Our parents own a condo with an outstanding mortgage. They have hard time coming up with payments and we want to help them by paying off their mortgage in full(it is not assumable). We also want with their agreement to remove their names from the property title and transfer it to our names.
Is this possible? Will we be full owners of the property if we do that? What happens if only our names are on the title but they mention somebody else's name in their will to inherit a part of this property?
Thanks.
EB.
to eb,
you will have to refinance the existing mortgage in order to have the property title in your name. the lender will not allow your parents to transfer the property to you till the time the mortgage is paid off. since the loan is not assumable, you will have to refinance and pay off the mortgage in full. once you get the title in your name, your parents will no longer be the legal owners of the property. hence, they will not be able to will the property to someone else.
you will have to refinance the existing mortgage in order to have the property title in your name. the lender will not allow your parents to transfer the property to you till the time the mortgage is paid off. since the loan is not assumable, you will have to refinance and pay off the mortgage in full. once you get the title in your name, your parents will no longer be the legal owners of the property. hence, they will not be able to will the property to someone else.
i won't go out on any sort of limb like savior did - i don't know the law, and therefore wouldn't dare to comment about the viability of a will that precedes the transaction you're speaking of.
you do not need to refinance, obviously. if your sole intent is to pay off the loan, then do so, by all means. clearly, also, you'll need to have your parents' cooperation and authorization to transfer ownership to yourselves, and at that time it would make a great deal of sense to discuss whether the property has been mentioned in a will, if any.
i'd suggest you (all) get legal advice - not from a layperson, but from an actual lawyer. i don't think that a real estate lawyer is apropos, but an estate lawyer might make a great deal of sense, particularly since you're concerned about the possibility of what might be contained in a will.
you do not need to refinance, obviously. if your sole intent is to pay off the loan, then do so, by all means. clearly, also, you'll need to have your parents' cooperation and authorization to transfer ownership to yourselves, and at that time it would make a great deal of sense to discuss whether the property has been mentioned in a will, if any.
i'd suggest you (all) get legal advice - not from a layperson, but from an actual lawyer. i don't think that a real estate lawyer is apropos, but an estate lawyer might make a great deal of sense, particularly since you're concerned about the possibility of what might be contained in a will.
Hi Jessica,
My daughter is divorcing her husband and wants to have her name removed from the loan papers. She hasn't lived in the house for 2 years and has not contributed to any of the payments. Her soon to be ex-husband says he's doing a loan modification and that my daughter needs to sign a "quit claim" in order for him to do this, and that he will do an "Assumption" after. This doesn't seen like a good thing for her since from what I understand an Assumption does not release her of any liabily. He does not qualify for refinancing on his own.
Thank you,
My daughter is divorcing her husband and wants to have her name removed from the loan papers. She hasn't lived in the house for 2 years and has not contributed to any of the payments. Her soon to be ex-husband says he's doing a loan modification and that my daughter needs to sign a "quit claim" in order for him to do this, and that he will do an "Assumption" after. This doesn't seen like a good thing for her since from what I understand an Assumption does not release her of any liabily. He does not qualify for refinancing on his own.
Thank you,
Hi Guest,
If your daughter wants to remove her name from the mortgage, then she will have to ask her husband to either refinance or assume the mortgage. Signing a quit claim deed will only help her in removing her name from the property.
If your daughter wants to remove her name from the mortgage, then she will have to ask her husband to either refinance or assume the mortgage. Signing a quit claim deed will only help her in removing her name from the property.
i currently co-own a house with a friend...I wish to get my own place. the other owner wants to stay with the house.. Chase sent Assumption papers for the staying person to buy out my part of the loan. My realtor suggest that i get a lawyer to review the Assumption papers.
Is this necessary?
Is this necessary?
Hi G,
It is not necessary but it won't be a bad option to review the assumption papers by a lawyer. The lawyer will help your co-owner to understand the assumption process in details and the person will also get to know his or her liability towards the property.
It is not necessary but it won't be a bad option to review the assumption papers by a lawyer. The lawyer will help your co-owner to understand the assumption process in details and the person will also get to know his or her liability towards the property.
My fathernlaw can't afford his home anymore. My wife & I have been making payments the last 5 months & he wants us to take over the home since he has paid 15 years in an exchange for $30k. Problem is we don't qualify for a loan of ours & the bank did say we can do an assumption of a loan once it is all caught up but I don't think we have great credit if they decide to check. What else can we do to save the home & take over legally?
hi kevin!
welcome to forums!
if you want to save the home and take over the mortgage, you will have to refinance the home loan. i would suggest you to take steps in order to improve your credit score. once your credit score gets improved, you will be able to refinance/assume the loan.
to know some steps in order to improve your credit score, check out the given page:
http://www.mortgagefit.com/credit-rating/credit-repair.html
feel free to ask if you've further queries.
sussane
welcome to forums!
if you want to save the home and take over the mortgage, you will have to refinance the home loan. i would suggest you to take steps in order to improve your credit score. once your credit score gets improved, you will be able to refinance/assume the loan.
to know some steps in order to improve your credit score, check out the given page:
http://www.mortgagefit.com/credit-rating/credit-repair.html
feel free to ask if you've further queries.
sussane
what if he doesn't mind keeping hte loan in his name? what options do i have if i take that direction... does a quit claim deed do any good? i just want to avoid any problems later if something happens between "our agreement"...
thanks!
thanks!
Hi Kevin,
Your father-in-law can use a quit claim deed in order to transfer the property in your name. However, once the ownership of the property changes, the lender will want you to refinance the loan in your name.
Thanks
Your father-in-law can use a quit claim deed in order to transfer the property in your name. However, once the ownership of the property changes, the lender will want you to refinance the loan in your name.
Thanks
Hi, I am in the process of doing an assumption loan with wells fargo to take off my ex wife off the loan. Wells Fargo asked me to pick a title agent, title company, or real estate attorny to conduct the "TITLE TRANSFER". What is the best and cheapest way for my ex wife to conduct a title transfer?? The property is in Fairfax County, Virginia. Do we both have to be at this closing and what is the average cost of of an assumption title transfer?? Thanks for any information you can provide.
Hi anonymous!
Welcome to forums!
Your ex-wife can sign a quit claim deed and transfer the property to you. She can contact an attorney and he will help her in drafting the deed, notarizing it and recording it. Once she does so, then you can assume the mortgage.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
Your ex-wife can sign a quit claim deed and transfer the property to you. She can contact an attorney and he will help her in drafting the deed, notarizing it and recording it. Once she does so, then you can assume the mortgage.
Feel free to ask if you've further queries.
Sussane
hi! i was in a long-term same-sex relationship and we had a house together. i was given the option from my ex to either move out or stay their with she and her new girl. i moved out. my ex-partner wants to keep the house and sent me "loan assumption" paperwork the other day. should i seek an attorney? i'm gathering from info reading on the web that if it gets "approved" through bank of america, she could have the house. but i also need to look into a novation agreement, pending the lender's approval - so i am no longer liable? ...and do a quit claim deed to be removed from the title. i don't believe i should be seeking any buy-out, since we had owed more than it is now worth with this wonderful economy in america. are those the things i need to be aware of, or am i missing anything?? thank you!
Welcome Monique,
Once your partner assumes the loan, you won't remain liable for the mortgage payments in any way. You can sign the quitclaim deed in your partner's favor which will make your partner the sole owner of the property. In order to sign a loan assumption document, you don't have to seek the help of an attorney.
Once your partner assumes the loan, you won't remain liable for the mortgage payments in any way. You can sign the quitclaim deed in your partner's favor which will make your partner the sole owner of the property. In order to sign a loan assumption document, you don't have to seek the help of an attorney.