Posted on: 23rd Apr, 2013 01:53 am
I had to sell my home in short sale due to my illness and loss of job. I was able to end up paying off one of our two cars in the meantime. I'm now renting but want to buy the house. The owner owes more than the house is worth. My bank said "they will let my loan be "assumed", but I don't know what that means and what all that would entail, if I should do it, etc. Anyone have any suggestions?
Hi Kilbil,
It will be better if you could clarify the whole matter from the lender before you sign on the dotted lines.
Thanks
It will be better if you could clarify the whole matter from the lender before you sign on the dotted lines.
Thanks
Before taking the loan assumption compare the interest rates.If the interest rates are higher than the current low interest rates we are enjoying, it might not be to your advantage to assume the loan.
Assumption usually also will not relieve the original owner in case of default. So if you assume, and default, both of you would be on the hook for the loan