Posted on: 12th Nov, 2005 11:33am
Simple assumption is a process by which a buyer assumes or takes over the seller's mortgage obligation. But this doesn't mean that the seller is release from the liability. That's the reason, simple assumption is also known as transfer with no release of liability.
When you assume a loan and default, the original seller is secondarily responsible for paying off the unpaid balance. And the lender cannot seek a deficiency judgment against the original borrower if he fails to recover the unpaid debt by selling the home.
If you assume your parents' loan, they are not completely released from the liability and hence the loan payments will be reflected in their credit reports and not yours. However, if you default, then your parents' credit report will reflect an outstanding mortgage and it will be difficult for them to seek any other loan.
When you assume a loan and default, the original seller is secondarily responsible for paying off the unpaid balance. And the lender cannot seek a deficiency judgment against the original borrower if he fails to recover the unpaid debt by selling the home.
If you assume your parents' loan, they are not completely released from the liability and hence the loan payments will be reflected in their credit reports and not yours. However, if you default, then your parents' credit report will reflect an outstanding mortgage and it will be difficult for them to seek any other loan.
yes, can u tell me more about simple assumptions and what does it mean transfer with no release of liability? my parents made a mortgage for me to buy a home 4 years ago. i paid the notes. they have passed away and the property and double wide home was willed to me. we done a assumption of the loan with our morgage comp. and lawyer 4 months ago. my main concern right now someone told me that this will not go on my credit. the loan co. says it is only in my name that my parents names have been removed. can you tell me anything about this.I am tring to rebuild my credit and i feel having a mortgage and keeping the payments up will help improve it. is there something i can do? any information would be helful. thank you
My husband and I are legally separated in NC and he took out a modified loan with BoA a year ago with the understanding if he stays current with his payments he can apply for a simple assumption loan. He was found to be in good standing and is qualify for a simple assumption loan. His goal of accepting this loan is to have only his name on the mortgage. Is it true that my name would no longer be tied to the mortgage or will I still be liable for the mortgage once the simple assumption loan is approved?
Welcome Guest,
If your husband refinances the loan in his name, then the mortgage will not be tied to your name any further. Your husband will be liable for the mortgage solely.
If your husband refinances the loan in his name, then the mortgage will not be tied to your name any further. Your husband will be liable for the mortgage solely.
My question: my significant other died of cancer...I am not on the mortgage. Before his death he quit claimed the house to me. Does Illinois acknowledge an easy assumption? What concerns me is that we had to file chapter 7 in order to keep some of our assetts as his illness drained us of every single cent we had. I am gainfully employed and have been making the morgage payments for the last 5 years. I just fear they would deny the assumption and try to take the house from me. Thank you!
Hi Patti,
You will have check out your loan docs in order to find out if you can go for an easy assumption. The loan docs will clarify the matter.
Thanks
You will have check out your loan docs in order to find out if you can go for an easy assumption. The loan docs will clarify the matter.
Thanks
My Father passed and left me as his Executrix of his estate. I have a Quick claim Deed in my name and my husbands name. I have done a simple assumption with no financials attached. 100$ and a signature was all I needed? They would not put my husband on it. Is this a common way of doing this? The loan # and original closing date stayed the same. So does this mean nothing changed but a name?
Welcome kellie,
As you assumed the loan, none of the details changed. Only the name of the borrower got changed. If you would have refinanced the loan, then all the other details would have changed as well.
As you assumed the loan, none of the details changed. Only the name of the borrower got changed. If you would have refinanced the loan, then all the other details would have changed as well.
Our former friend/landlord stopped paying the bills and has since abandoned the house and us.
We are still in the house as we have no where else to go and she has stated that she does not want the house. Do we have any options?
We are still in the house as we have no where else to go and she has stated that she does not want the house. Do we have any options?