Assumable Mortgages?
There are basically two types of assumptions. Formal and informal. “Formal” is where the buyer assumes the loan but under the provisions of the bank which actually creates a whole new loan. “Informal” was done mostly by VA and FHA lenders, not too common any more, but do exist. The buyer pays down to the loan amount in order to assume the loan. Seller is stuck with this loan on his credit report until it is paid off. It wasn’t such a super idea and these lost their popularity after the 1980s real estate crunch. So check your mortgage and see if you have an “assumable loan” and go from there. Betcha you don’t. You can always sell on a land contract and not have to pay off your mortgage in full until you issue a deed to the new owner. Rent-to-own is also an option nowadays. Contact a good real estate attorney to do the paperwork. So many people are in the same boat, nationwide…something has to change and fast…. Good Luck!
