When assuming a mortgage, the seller will agree to let the potential buyer take over his or her mortgage payments at the same interest rate level that they may have had since the house was first purchased. The buyer is essentially assuming the existing mortgage, which in many cases can work out well for both the home seller and the purchaser.

A mortgage assumption is a contractual agreement wherein a home purchaser assumes the sum total of a seller’s requirements on his mortgage, including the full balance, the repayment of same, the length of the mortgage and the rate of interest. Such an assumption is not at all the same as purchasing a home subject to the mortgage. The approval of the current lender is always necessary when entering into a mortgage assumption. This is due to the fact that you are taking over the liability from the present homeowner.

One of the unique risks involved in an assumable mortgage can exist for the party that is selling the home. This type of loan can find the seller held liable for the loan even after the loan assumption has taken place. For instance, in a situation where the buyer to default on the mortgage loan, it could end up leaving the seller responsible for whatever amount the lender is not able to recover. To help minimize this risk, sellers have the option of releasing their liability in writing at the time of the agreement. Also, since the buyer is receiving great benefit from the mortgage assumption, he must understand that the seller should receive some advantage as well. In general, the advantage to the seller will materialize in a greater price for the house. Read the rest of this entry »

Question by JosieE7: Assumable Mortgage?
How do I list my house as an assumable loan and can I ask for more than what the loan is listed at? I need to get out of my house soon because I can’t afford it anymore because of a divorce and I just need to sell it. I want to do an assumable because I have a great interest rate and want the buyer to pay closing cost and assumable loan fees. PLEASE HELP!!
But I don’t want to pay closing cost or get a realator. Will that help or hurt me?
Yes, I’ve talked to my lender and they said it is an assumable loan but they have to qualify through them.

Best answer:

Answer by Judy
Sure, you can advertise it that way – and could be a selling feature if it’s got a good rate.

And you can ask more than the loan – the difference would have to be made up by the buyer either with down payment, another loan, or combination of the two.

Good luck.

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Question by Britton J: Why isn’t Wall Street paying for its own bailout?
This is what I wrote to my Senator
Dear Senator

I’m screaming!!! Can you hear me??? Do not jump on board with Bush… it is imperative that you put the burden on the rich. Use the idea of a surtax on stock transactions and the taxing of capitol gains dividends. Tax them!!! Let those that dabble in Wall Street pay for Wall Street. Couple that with regulation and over site and don’t ever take your eye off the ball again. Likewise, if failure to fulfill their fiduciary responsibilities does occur then CEO’s need to go to prison and have their accounts confiscated. This is nuts that you would dump on us again… stop this madness. People need health care in this country and this is Norquist’s plan to tie us up in knots with no moneys for the poor and middle class while they walk away with the check book. I retired from United Airlines and WE watched them walk away with my money while they claimed bankruptcy on my retirement. For 12 years I was an employee owner and they were the highest in UAL’s History and yet they failed to fund the retirement. The government over site or the PBGC took its eye off the ball and didn’t require the Corporation to fully fund the retirement… don’t do it again. Stop this crap!

There is no rush, Dodd and Pelosi don’t have to do this… Sorry, but I’d rather go into a recession and work our way out rather than give the rich one more dime. Take the same money and put people to work and they will pay their mortgages… and our infrastructure will be rebuilt OR take the bad loans and renegotiate them in two, a 1st and a 2nd mortgage, leaving the owner with a payment and interest rate that fits their income and the rest to be put on a FEMA type loan at 3 percent simple interest with no payments for 30 years or until the property is sold Let’s get creative to keep people in place and the economy moving.

I work for a company that writes rehab loans using city money @ 30 years no payments, 3 percent simple interest. Our max is $ 35,000 but that can be upped if need be. As long as the home owner is able and there is some equity there, however small… Lets keep the ball rolling till they die or sell. Then all their un-assumable loans are paid off. Everybody wins while we tighten up regulation on Wall Street.

Best answer:

Answer by greeneyedlady35
I totally agree, I wish we could let wall street handle their own. Politics as usual. I think this is the beginning of the end.

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