Johny Utah Posted December 7, 2015 Report Share Posted December 7, 2015 Has anyone assumed one before? Did everything go smoothly? Quote Link to comment Share on other sites More sharing options...
Mojoe Posted December 7, 2015 Report Share Posted December 7, 2015 No, I've not done one for me. Yes, I have done paperwork for someone to assume a mortgage. Couple questions, why assume and not just do your own loan? Is it a VA loan? Those are good to assume usually, but must be vet to vet or currently serving members. Is this in conjunction with a quit claim for you to be on the deed? Who is the mortgage through? Marc, take over. I have to go do my other job. Quote Link to comment Share on other sites More sharing options...
Johny Utah Posted December 8, 2015 Author Report Share Posted December 8, 2015 I own the home and someone I know wants to assume my mortgage. It's a fha loan. It's through Cenlar Quote Link to comment Share on other sites More sharing options...
AngryBMW Posted December 8, 2015 Report Share Posted December 8, 2015 Has anyone assumed one before? Did everything go smoothly? I have never personally assumed a mortgage...but would happily discuss the pro's and con's with you. My direct email is mstock@usavingsbank.com or my office line of 614-339-1206. As Joe said...why not simply obtain your own mortgage? I would guess that the loan you are considering assuming has a killer interest rate that cannot be matched today? I can tell you that it is not as simple as you may have been led to believe. You still have to fully qualify for the current mortgage with regard to income, assets and credit, and will of course still have assumption/closing costs to consider. Let me know how I may help. Marc, take over. I have to go do my other job. Ha, copy that! -Marc Quote Link to comment Share on other sites More sharing options...
AngryBMW Posted December 8, 2015 Report Share Posted December 8, 2015 I own the home and someone I know wants to assume my mortgage. It's a fha loan. It's through Cenlar Shit...same basic answer as above. Definitely pro's and con's but not as simple as just signing a few forms and handing over the keys. Thanks! Marc Quote Link to comment Share on other sites More sharing options...
Johny Utah Posted December 8, 2015 Author Report Share Posted December 8, 2015 I just want to make sure also after my mortgage is assumed I'm not liable for it anymore and I'm free and clear from everything. Quote Link to comment Share on other sites More sharing options...
Mojoe Posted December 8, 2015 Report Share Posted December 8, 2015 You'll need to read your mortgagee clause and see if your lender allows it to be assumed, or call them. It's very hard to suggest going this route for anyone. Is this to a family member? Quote Link to comment Share on other sites More sharing options...
Johny Utah Posted December 8, 2015 Author Report Share Posted December 8, 2015 It is assumable. Yes pretty much a family member. Quote Link to comment Share on other sites More sharing options...
AngryBMW Posted December 8, 2015 Report Share Posted December 8, 2015 I just want to make sure also after my mortgage is assumed I'm not liable for it anymore and I'm free and clear from everything. 99% of all FHA loans are assumable so I'm glad yours is. The person that wants to assume it will have to contact your loan servicer and ask what their steps are. Typically, they will want to do a full loan approval on that person as if they were purchasing it from you. So they will typically still need a down payment and need to credit/income qualify. What is your current rate? I would imagine that is what your 'buyer' is going for? -Marc Quote Link to comment Share on other sites More sharing options...
Johny Utah Posted December 8, 2015 Author Report Share Posted December 8, 2015 The forms from my mortgage company says there is just closing costs to pay. My rate is 4% Quote Link to comment Share on other sites More sharing options...
AngryBMW Posted December 8, 2015 Report Share Posted December 8, 2015 The forms from my mortgage company says there is just closing costs to pay. My rate is 4% Cool cool. I just checked with my FHA underwriter and it is 100% up to the individual loan servicer. Market pricing is lower than 4% today fyi. Good luck! Marc Quote Link to comment Share on other sites More sharing options...
Geeto67 Posted December 8, 2015 Report Share Posted December 8, 2015 Stupid question Marc but from a purely intellectual point of view how do you deal with the accrued equity in a mortgage assumption situation? Does the person assuming the mortgage inherit that? does he have to pay it out to the person he is assuming the mortgage from? how does it work? Quote Link to comment Share on other sites More sharing options...
o0n8 Posted December 8, 2015 Report Share Posted December 8, 2015 I used to do the back end part of assumptions (updating the system to reflect the new borrower in the system) but I think the new borrower assumed all equity. Sometimes the paperwork would show new borrower paying a lump sum to the old borrower, or it was part of a court order from a divorce settlement but that part of the deal didn't matter for what I did so I didn't pay much attention. To the OP's question about liability, If the lender does the assumption properly, The old borrower will be released of all liability and the credit bureaus will be notified. You should receive a letter from the lender when the assumption is complete. A free credit report will let know but it can take a month or two for the report to reflect it. Quote Link to comment Share on other sites More sharing options...
AngryBMW Posted December 8, 2015 Report Share Posted December 8, 2015 Stupid question Marc but from a purely intellectual point of view how do you deal with the accrued equity in a mortgage assumption situation? Does the person assuming the mortgage inherit that? does he have to pay it out to the person he is assuming the mortgage from? how does it work? Not a stupid question at all. Depending on how the two parties have structured the deal, the person assuming the mortgage will inherit the equity in the property. To my knowledge, the only way for the person giving up the property to take/keep the available equity would be for the person assuming it to get a separate mortgage or pay cash for the equity. No lender that I know of will allow the amount of the mortgage to be higher than the amount owed. I used to do the back end part of assumptions (updating the system to reflect the new borrower in the system) but I think the new borrower assumed all equity. Sometimes the paperwork would show new borrower paying a lump sum to the old borrower, or it was part of a court order from a divorce settlement but that part of the deal didn't matter for what I did so I didn't pay much attention. To the OP's question about liability, If the lender does the assumption properly, The old borrower will be released of all liability and the credit bureaus will be notified. You should receive a letter from the lender when the assumption is complete. A free credit report will let know but it can take a month or two for the report to reflect it. Yup! -Marc Quote Link to comment Share on other sites More sharing options...
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