How Do You Transfer A Mortgage To A New Owner?
You can transfer a mortgage to a new owner only if the original loan agreement contains a clause that says the mortgage is “assumable.” Keep in mind, though, that the bank or mortgage company will still need to approve the new owner who is taking responsibility for paying off the loan. If the mortgage is not assumable, the new owner must obtain her own mortgage in order to purchase the property and have the financing in her name. Contact the mortgage lender. The current owner should call the mortgage lender to say he wants to transfer the mortgage to the buyer. The current owner should ask if the mortgage is assumable, which means the transfer can proceed. Otherwise, the transaction must proceed in the usual way: the buyer would obtain a separate mortgage. Have the buyer complete the mortgage company’s application and a consent form to allow a credit check. Even if the mortgage is assumable, the mortgage company will want to make sure that the buyer is a good credit risk, which involve
