Assuming A Mortgage
I have a seller I've been talking to who found out from the mortgage company that his mortgage is
assumable. He owes 64,000 on the house 2300 sqft .5 acers. He does not need any money down. He just
wants to get out of the mortgage. Is there any thing someone can tell me about assuming a mortgage? It
sounds like a great way to go.
Thanks in advance for any advice!
Have him ask his mortgage company to send him the assumption package for you to fill out.
Meanwhile, you want to know how much the house is worth, how much owed, the rate, type, and year the loan was taken.
I think it is a great way to go. Congrats.
It sounds like a great opportunity. I would also add to that a seller disclosure statement about the property just to ensure you aren't inheriting a headache or problems.
Depending on what the FMV of the house is, I am curious as to why the seller hasn't just put it on the market and doesn't want any cash in pocket. But people do have their reasons.
dnvrkid
FMV is 75,000. There are some problems, mostly cosmetic. He did wat cash but over the weekend power was shut off and pipes froze and some radiators cracked. He is willing to fix that problem. He wants out of this house. was renting it to his sister, that didnt work. Now he has 2 mortgags and cant afford time or money to deal with this house. Hes willing to forfit any cash just to get out.
The reason I wouldn't "assume" is , as Locke taught me, you're on the hook for that mortgage and you have to qualify and tie up your credit. Why not do the subto? No mortgage in your name.
How would i sub2 this???
I would sub to this. Leave the loan in HIS name not yours. Just take over his payments, get the deed and record it. Work out all the repairs that are needed to be made upfront.
As far as assuming it... most mortgages that are assumable require that you occupy the home for a certian period of time.
Interesting.
I have asked the question before "whether an investor would prefer to assume or sub2?" Guess I'm hearing the answer. It is true that an assumption 'becomes yours'.