Posted on: 07th Jun, 2012 08:08 pm
Hello! Long time reader first time poster
I have a situation where a friend and I purchased a house together two years ago and now she is moving out of the country and does not wish to be responsible for the house & loan.
What is the easiest way to remove her name from the loan?
I have been researching a loan assumption but have not received a clear explanation. Example
Me & Friend are on the loan
Loan assumption approved
I assume the loan
Is a completely new loan created (complete with normal closing costs, etc?)
Or do I just assume the initial loan and my friend's name is removed?
Thanks to anyone that can help this girl out!
I have a situation where a friend and I purchased a house together two years ago and now she is moving out of the country and does not wish to be responsible for the house & loan.
What is the easiest way to remove her name from the loan?
I have been researching a loan assumption but have not received a clear explanation. Example
Me & Friend are on the loan
Loan assumption approved
I assume the loan
Is a completely new loan created (complete with normal closing costs, etc?)
Or do I just assume the initial loan and my friend's name is removed?
Thanks to anyone that can help this girl out!
hi sparklesonefour,
you will have to refinance the mortgage in your name in order to remove her name from the loan. if a loan assumption clause is mentioned on the mortgage docs, then you can even go for that option. in case of a refinance a new loan is created and you will be liable for paying the closing costs.
you will have to refinance the mortgage in your name in order to remove her name from the loan. if a loan assumption clause is mentioned on the mortgage docs, then you can even go for that option. in case of a refinance a new loan is created and you will be liable for paying the closing costs.
thanks for the reply!
Would a new loan need to be drawn up for a loan assumption?
In your experience what is the cheaper route?
Would a new loan need to be drawn up for a loan assumption?
In your experience what is the cheaper route?
Hi sparklesonefour,
Loan assumption is definitely cheaper but most of the lenders will prefer a refinance compared to assumption. As far as I know, new documents will be drawn up while you assume the loan.
Thanks
Loan assumption is definitely cheaper but most of the lenders will prefer a refinance compared to assumption. As far as I know, new documents will be drawn up while you assume the loan.
Thanks