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What is the difference between a Simple and Qualified Assumption?

April 26, 2017Assumption difference qualified simple

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What is the difference between a Simple and Qualified Assumption?

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The Simple Assumption will allow a borrower’s name to be removed from the loan statements and title, but the borrower being removed is not released from financial liability for the loan.

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The Simple Assumption process provides authorization to have an owner’s name removed or added to title or changed (i.e. Lisa Jones to Lisa Smith), but does not release the borrower from financial liability for the loan. The Qualified Assumption process allows the original borrower (seller) to be released of financial liability for the loan and the new borrower (buyer) becomes obligated for all outstanding payments and obligations under the terms of the loan documents.