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looking for someone to assume my mortgage

Hi All,

Does anyone know how to find someone to assume a mortgage. This is a summary of my situation: I owe $700K on my mortgage. I am current but am unable to keep paying the mortgage b/c I am not wokring. It is a 2 family and the tenants do not cover the mortgage. I have an offer for a short sale for 685K but would prefer for someone to assume the mortage so I don't take a hit on my credit and have income reported on my 1099. The house is in NJ and is a new construction. Oh and one more question, I was told the lender pays the broker commission in a short sale but does the lender take the commission off the sale price and consider that additional deficiency from the loan? Thanks for any assistance you can offer!

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

As far as loan assumption is concerned, either your spouse or someone from your family or friends can assume the loan provided they have a good credit score and income. As far as short sale is concerned, it affects your credit score and lowers it by 75-100 points but as you will have to pay the deficient amount resulting from the sale, it will not be reported on your 1099. I think, the broker commission is taken off from the sale price by the lender.

Thanks

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:28 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thanks for the info. Unfortunately my family member has bad credit so he won't be able to assume the mortgage. I am hoping that the lender will forgive the deficiency and that it will only be reported as income on my 1099 but I have not discussed details with them yet.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:28 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest,

You should first speak to the lender and check out with him if he is ready to negotiate with you or not. If the lender forgives the deficiency, then there are high chances that the lender will report this in 1099.

Thanks

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:28 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

thank you

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:28 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i will assume it what are rents??>?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:28 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

guest, do you realize that in an assumption you are still fully liable for the debt unless the lender specifically releases you from liability? you may not want to deal with it now, but you might be forced to in the future if you do what you plan. also, have you had any discussions with the lender about them allowing an assumption? they call the shots, after all.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:28 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Looking for someone to assume my mortgage. Owe $113500, home needs some repairs. Good fixed rate. I am looking to upgrade to larger home.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:28 | Post subject:

sara's picture
sara | Joined: July 5, 2006 03:16 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Sdillard,

You can request your friends or relatives to assume your mortgage. It will be their discretion whether or not they would assume the loan. If you find no one to assume the loan, then you will have to list the property in the market and sell it off. The sale proceeds will be used to pay off the mortgage balance. If there is a deficient balance, then you will have to pay it off from your pocket.

Take care.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:28 | Post subject:

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