Question by VeryFunnie: Seller Financing?
I saw a house for sale by owner on craigslist. The owner has been trying to sell the house for 4 months due to job transfer.
The house is basically brand new (Jan. 2007). He only has $ 9,000 in his equity. The agreement (we haven’t sign the papers yet) is he will carry the loan for 3 years until I get my own financing.

I found out his loan is not assumable and I need to come up with another solution. I don’t mind seller financing but the problem is that he doesn’t own the house free and clear. He basically wants me to take over his $ 1435 a month payment for 3 years until I get my financing. Since the mortgage is in his name, how can I get credit for paying his mortgage until I get my financing?

Best answer:

Answer by I’m Beat!
You wouldn’t get credit. You would be paying off his loan with your money. He gets all the benefits and you get a house. You’re not assuming the loan, He keeps his loan and you pay.

I would stay away from this one. It could open a whole can of worms without all the proper real estate paperwork signed so that there is no argument of who is responsible for what.

I don’t even know if this sort of thing can be legally done unless you just want to pay him to rent the house for 3 years till you can buy it from him with your own financing.

What do you think? Answer below!

Question by JRU: How do I give my house to a relative?
I had 2 mortgages on the house. The first was an interest only fixed rate mortgage and the other was a home equity loan. At the time, the house was worth a lot more then I borrowed, so I had the ability to borrow quite a bit of equity on the house. That was then, this is now. Before everything in Florida crashed (that’s where the house or I should say Condo is located), I used the remaining balance on the home equity loan, which had a lower interest rate to pay off the first mortgage in full.
Now I am left with a home equity second loan only on the condo with a balance greater then the value. I want to give this condo to my sister. Is a home equity loan assumable? Can I just sign it over to her with minimal closing costs?

Best answer:

Answer by jlf
You cannot “just sign over” the title to a house that has liens on the title. Loans are generally not assumable – even if they are, the lender must approve an assumption.

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