What are some of the risks, as a seller, of having someone assume our mortgage?
• If your Buyer ceases to make payments the lender can seek you out for payment UNLESS YOU HAVE THE BUYER GO THRU THE QUALIFYING PROCESS WITH SAID LENDER. At which point the fees associated with this are about the same as them getting new financing. Personally, I would never let someone assume my mortgage. I have seen people (sad confused people) trying to understand why “after all this time” they are getting nasty grams from the Lender demanding payment. Also, you would need to look VERY carefully at your original mortgage docs (Deed of Trust). Because unless this is an old, old mortgage, Most Lenders have specific wording stating that a borrower would have to qualify to assume the loan. **Yes, it is a risk for the seller. Unless the Buyers qualify to assume the loan. Until they do the Seller has a degree of responsibility for repayment of the loan. It depends on the Lender, Banking Laws, and State Laws as to how far the lender can pursue a Seller for repayment of a loan they originat
Related Questions
- How do we handle the situation where the Seller is doing an Exchange and they will be carrying back a note and deed of trust or mortgage?
- Are mortgage lenders liable under these rules if the seller or lessor fails to disclose?
- What are some of the risks, as a seller, of having someone assume our mortgage?
