simple assumption/foreclosure

ohshirlee · Joined: 30 May 2006 Posts: 1 0.17 Dollars($)

I sold a property with a simple assumtion to my buyer. The loan is going into foreclosure. How can I redeem this mortgage and get a deed for the property? Would my only recourse be in a civil law suit against the buyer (after paying the balance due + costs)?

Guest 0.10 Dollars($)

Hi ohshirlee,

I think to suit a case in civil court against the buyer is the only way that you can take.

helping_user · Posted: Tue May 30, 2006 9:49 pm Post subject: Re: Acquisition of the property

Hi ohshirlee,

Guest 0.10 Dollars($)

HOW DOES SIMPLE ASSUMPTION WORK. I WANT TO SELL MY HOUSE TO MY SISTER. IS THIS A GOOD WAY TO DO IT SINCE SHE HAS BAD CREDIT.

helping_user · Posted: Thu Dec 07, 2006 11:28 pm Post subject: RE: how simple assumption works

Hi Joe,

Simple assumption is transfer of property having mortgage from one owner to another. It's known as "simple" as it requires only few documents to be signed while transferring ownership. For example, the death or divorce of a co-borrower and the borrower willing to remove the co-borrower's name from the loan. In a simple assumption, the liability of paying down the home loan isn't transferred; the borrower is still liable in case the new owner is not able to carry on with the payments.

With a simple assumption, you can sell the home to your sister as she has bad credit. This is because generally in this kind of assumption, the buyer or the new owner need not give details about his income and credit profile.

However, this may vary from lender to lender. One lender may be willing to ignore such details as the ultimate liability of paying off the loan remains with the original owner. But then, there can be other lenders who are willing to gather information about the would be owner's income and credit before allowing him to assume the loan.

But remember one thing, there should be an assumption clause stated on the loan document right from the very beginning when you were offered the loan.

To know more about this topic, go through How assumption Clause allows seller to transfer loan and an earlier discussion on Simple assumption of loan.

Thanks

Guest 0.10 Dollars($)

Where do I begin looking for an assumption property in Fort Washington, Bowie, or Upper Marlboro

sara

Hi Kim,

I guess you have to talk to some local real estate agents who deal with assumption properties.

Take Care

gmakerley · Posted: Mon Feb 18, 2008 7:55 am Post subject:

to joe - selling your home to your sister with "bad credit" and allowing her to assume your current mortgage is not a wise move. when a new buyer assumes a mortgage on a home, the original borrower on that mortgage is obligated to make payments as well.

assumptions are very risky business - at the very least you ought to beware since you stated clearly that your sister has bad credit. what makes you think she will be able to make payments? has she redeemed herself from that bad credit? be very wary of this transaction.

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