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
Are you on the title, as well as on the loan? You can take yourself off the title by simply signing a deed and releasing your claim in the property. But taking your name off the loan will not be that easy. You will either have to pay off the loan in full or have your boyfriend refinance the loan in his name. You can also file a partition lawsuit in court to enforce a forced sale of the house.
Are you on the title, as well as on the loan? You can take yourself off the title by simply signing a deed and releasing your claim in the property. But taking your name off the loan will not be that easy. You will either have to pay off the loan in full or have your boyfriend refinance the loan in his name. You can also file a partition lawsuit in court to enforce a forced sale of the house.
Can you tell me if there is any way to get my ex husband's name off of my mortgage? I was awarded the home in the divorce, and make all payments. He has also filed bankruptcy following the divorce. Is there anything I can do besides refinance? I owe more than the house is worth, and can't refi.
hi there im lost and dont know what to do! i transfered the title to my mothers home to my name and now what im trying to do is have the loan be under my name and remove my mom from the loan, loan is through bank of america, what can i do if any one can help that would be helpful. also do i have to refiance?
my ex and i broke up 2 yrs ago, i have been making all of the mortgage pymts myself. we are both on the deed and mortgage with myself as the primary. i want him off the house, but still be held responsible for the loans, and not have any access to the mortgages (ie... insurance, escrow funds, change of address) that could damage me or my credit. he's agreed to the q-c, but what can i do to still hold him financially responsible? i intend on suing him for the money he owes me. both mrtgs are int. only
unbearable
Welcoem o the forum
Once you get a quite claim deed from him, he longer has legal ownership on the house, but he will still be responsible for loan. He will not be able to make any changes on the loan. you need to make sure to notify the bank about the changes
Good luck and feel free to ask
Welcoem o the forum
Once you get a quite claim deed from him, he longer has legal ownership on the house, but he will still be responsible for loan. He will not be able to make any changes on the loan. you need to make sure to notify the bank about the changes
Good luck and feel free to ask
if "he" has legal representation and if either of the two of them have any sense, they will fight tooth and nail to prevent you from continuing to hold him responsible once he quit claims to you, unbearable. i sure hope the name you chose doesn't have anything to do with your relationship.
what you're seeking to do is extremely one-sided.
what you're seeking to do is extremely one-sided.
If I paid the Simple Assumption Loan in full, do I still have to fill all the paper work?
Victor:
Bank of America has me sending the same paper over and over, they are not very helpful. You would think that they don't want there money.
Bank of America has me sending the same paper over and over, they are not very helpful. You would think that they don't want there money.
those last two posts are not particuarly clear - if either of you can elaborate on what it is you're talking about, i'm sure we can provide at least some sort of answers.
My mother has requested that my family and I return to my home and assume the remainder of the mortgage. She is no longer able to maintain the notes, since my father has passed. Do I have to go through her mortgage company or can I just make the payments and she then sign the house over to me?
Hi
You can just keep making the payments and then have her sign over the house to you. The mortgage company does not mind who has been paying the mortgage. They are quite happy if the payments are made on time. But if you do not officially take over the mortgage, your credit score will not improve due to the payments you'll be making. If you want to improve your credit by making the mortgage payments, you'll have to either refinance or assume the loan.
You can just keep making the payments and then have her sign over the house to you. The mortgage company does not mind who has been paying the mortgage. They are quite happy if the payments are made on time. But if you do not officially take over the mortgage, your credit score will not improve due to the payments you'll be making. If you want to improve your credit by making the mortgage payments, you'll have to either refinance or assume the loan.
I adde my oldest so to my loan in case of my death he could retain my good interest rate. It cost me 100.00 to do so. He did not sign any of the oringal loan docs. Is he liable I was the only person to sign on the loan.
i understand how the simple mortgage thing works...one question: will my name be removed from the mortgage (even though I am still legally responsible)? The house as already been quit claimed to my ex wife. Will the mortgage still show up on my credit reports?