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Can we assume a mortgage loan without refinancing?

Posted on: 07th Sep, 2010 08:34 pm
My mother-in-law's husband passed away last year and she asked us if we wanted to take over her mortgage payments and she would move in with her daughter. Since then she has been diagnosed with terminal cancer. Her house payments are about $700 cheaper than our current mortgage payment. If we are able to assume the loan, can they make us re-finance if she passes? We wanted to do a contract for deed but she only has a year or two, so we were advised that it wouldn't be a good decision. Or are there any other avenues we can take to keep the current loan without refinancing.
Hi gilletteamanda,

If you've already assumed the mortgage and if the loan docs already have your name, then you won't have to refinance it though your mother-in-law passes away.

Thanks
Posted on: 07th Sep, 2010 10:41 pm
Hi gilletteamanda,

welcome on board,

If you wish to take hold of that house then you need to refinance the loan from your mother-in-law and you need a quitclaim deed as well to transfer the property on your name.
If you can afford to pay monthly installments for both the houses then that is well & good but if you could not afford it then surely you need to think about 'which home is better'? and accordingly choose one between them and then you can either short sell or do DIL for the house which you do not wish to keep.

DIPA
Posted on: 08th Sep, 2010 01:55 am
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