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
Hi Cyn!
Welcome to forums!
You may refinance your ex-partner's mortgage in your name in order to remove her name from the loan. You may contact the lender and apply for assumption. It will depend upon the lender whether or not the lender will consider your request.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You may refinance your ex-partner's mortgage in your name in order to remove her name from the loan. You may contact the lender and apply for assumption. It will depend upon the lender whether or not the lender will consider your request.
Feel free to ask if you've further queries.
Sussane
With BOA, is it possible to do a Simple Assumption by allowing my grand-daughter and her husband to assume the payments on my house. Would the
title to the property then be listed in their name, as well as BOA, rather than my name? I know that I would still be responsible for the unpaid balance in the event they default. Guess what I am asking is, if a title search was done, would it still show up in my name.
That, plus, does BOA allow Simple Assumptions of this nature?
title to the property then be listed in their name, as well as BOA, rather than my name? I know that I would still be responsible for the unpaid balance in the event they default. Guess what I am asking is, if a title search was done, would it still show up in my name.
That, plus, does BOA allow Simple Assumptions of this nature?
Welcome slotalkinwoman,
It will be completely the discretion of the BOA whether or not they will accept your grand-daughter's request for a loan assumption. You and your grand-daughter will have to contact the lender in this regard. If the assumption is done, then the mortgage will be under the name of your grand-daughter. However, if you do not quitclaim the property, then the property will remain in your name.
It will be completely the discretion of the BOA whether or not they will accept your grand-daughter's request for a loan assumption. You and your grand-daughter will have to contact the lender in this regard. If the assumption is done, then the mortgage will be under the name of your grand-daughter. However, if you do not quitclaim the property, then the property will remain in your name.
Thanks for the reply, and for the information. If BOA allows the simple assumption, then I will definitely check into a quitclaim of the property...
Again, thanks
Again, thanks
You're welcome, slotalkinwoman!! :-)
We live on Long Island, NY. Mom took out a mortgage on her house to consolidate debt and to help my wife & I conduct home improvements on our house. We want to make sure that if Mom passes away that we assume our share of the mortgage payment so the home does not need to be sold to pay off the debt. How best should we go about that. Chase Mortgage holds the loan.
Hi Richie,
Once your mother is no more, you will have to refinance the mortgage in your name and make the required payments on time. Once you do so, the lender won't come after your property.
Once your mother is no more, you will have to refinance the mortgage in your name and make the required payments on time. Once you do so, the lender won't come after your property.
My friend and I bought a house in Florida together 8 years ago. I am the secondary borrower and she is the primary. I need to move in with my Mother and help her financially since my Father died. I want to get my name off the mortgage and not just the deed. Our Chase bank said they will send a 10 page assumption package and couldn't tell us the cost. Will this work or does she need to refinance the house or sell? That is what I was told in the past by my personal banker. Do I need to hire a real estate lawyer? Thanks so much.
Hi Guest,
If she assumes the mortgage, then there is no need to refinance the loan. The mortgage will be transferred in her name and she will be liable for the mortgage payments solely as per the rate and term. If she agrees to the loan assumption, then you don't need to contact an attorney.
Thanks
If she assumes the mortgage, then there is no need to refinance the loan. The mortgage will be transferred in her name and she will be liable for the mortgage payments solely as per the rate and term. If she agrees to the loan assumption, then you don't need to contact an attorney.
Thanks
thanks for your help jameshogg! does the loan assumption require both our signatures?
do i need to sign a quit claim deed too? i put equal money down on the house when we we bought it. i want at least half back,(before signing anything) but she said the house value has dropped and she'll give me a 1/4 of what i put down. i said no, you have to do better. will i need a lawyer to draw up a papers when transferring money? thanks again.
do i need to sign a quit claim deed too? i put equal money down on the house when we we bought it. i want at least half back,(before signing anything) but she said the house value has dropped and she'll give me a 1/4 of what i put down. i said no, you have to do better. will i need a lawyer to draw up a papers when transferring money? thanks again.
Hi Guest,
I don't think loan assumption will require both your signatures. If she is assuming the mortgage, then her signatures will be required on the mortgage docs. if you don't want to keep the property, then you will have to sign the quitclaim deed and transfer the property to her. You can contact a lawyer who will draft the deed for you in order to transfer the property to her.
I don't think loan assumption will require both your signatures. If she is assuming the mortgage, then her signatures will be required on the mortgage docs. if you don't want to keep the property, then you will have to sign the quitclaim deed and transfer the property to her. You can contact a lawyer who will draft the deed for you in order to transfer the property to her.
Hi Jiggs,
When the loan is refinanced, you can add your name to the mortgage docs. However, in order to do so, you should have good credit score and income.
Thanks
When the loan is refinanced, you can add your name to the mortgage docs. However, in order to do so, you should have good credit score and income.
Thanks
I assumed my brother's countrywide mortgage when he died. Subsequently Bank of America took over countrywide and I have been making payments on the mortgage for 6 years with no problem. I am now trying to get a HARP modification, and for the past 2 months faxing the same information repeatedly to B of A because they didn't receive it. Now they tell me that I only did a simple assumption and therefore the loan isn't mine and I can't modify, however for $900 they can fix it and I can start the process all over. What is going on?
Hi Richie,
Once an assumption is done, the loan is transferred in your name. This will make you the sole owner of the loan and you should get qualified for a HARP. You can take the help of an attorney in order to negotiate with your lender.
Thanks
Once an assumption is done, the loan is transferred in your name. This will make you the sole owner of the loan and you should get qualified for a HARP. You can take the help of an attorney in order to negotiate with your lender.
Thanks