Posted on: 16th Jul, 2010 01:37 pm
My wife I divorced in 2009 and in the decree she gave me the house. We are co owners of the mortgage with Wells Fargo. I am doing an "assumption Loan" with them to take my wife off the loan. I currently do not live in the property, I am renting it out (but the rent does not cover my actual mortgage payment, so making nothing off it). I work in NV and property is in VA. I want to know can I do an assumption, while having renters there?? Or do I have to occupy the property to do the assumption. I want to get my ex wife off so I can satisfy the divorce agreement. Please if you can answer these questions. Thanks in advance.
The answer to your question is actually completely up to the lender in question. If they'll allow it, there's no reason to be concerned. Frankly, given the circumstances, it only makes sense to allow it. Of course, if they think you live there, that may be why they're allowing you to do so. Have you actually had this conversation with them?
i have not had the converastion, but someone told me this might not be allowed, so i was concerned to tell them, but again i dont want to lie about it either, but my friend says you should tell them you live there. but i dont like that..so i guess i am afraid if they dont allow it, then i dont know if my other option is to refinance, which there is no way i could afford, do you know if most mortgage companies will allow the assumption, while the perosn is not residing and renting it out, especially when he is not making a profit from it?
I'm afraid I'm not aware of how "most" handle it, but given your circumstances it would only make sense for them to allow it. Now "making sense" isn't necessarily a part of the underwriting lexicon any more, so that's not giving you much comfort either.
I agree with your stance that it's simply not proper to tell them you reside in a property that you clearly don't. Refinancing would be problematic as well, of course, though not necessarily for the lender but for you, as you'd be suffering the "investment rate" etc.
Honestly, the only way you'll find out the real answer to this question is by discussing it with the lender directly.
I agree with your stance that it's simply not proper to tell them you reside in a property that you clearly don't. Refinancing would be problematic as well, of course, though not necessarily for the lender but for you, as you'd be suffering the "investment rate" etc.
Honestly, the only way you'll find out the real answer to this question is by discussing it with the lender directly.