It depends on what you mean when you say "Assume the loan". In the old days, (Assumable loans), you could essentially just inform the lender that you were taking over the responsibility of the loan. There was no qualifying, and the paperwork was just modified to put your name on the documents.
In the late 80's, Non-Assumable loans were born. These loans have a DOS (Due On Sale) Clause that essentially states that the lender may at their option decide to call the loan due and payable if there is a transfer of title. The key verbiage here is that"The Lender May At Their Option Call The Loan Due". This does not mean that they will, It does not mean that it would be worth the effort and/or expense to do so. It simply states that they may do so.
Quite often investors will take a property "Subject to" the existing financing. Essentially this means that the property owner will sign over ownership of the property, and the investor will start making the payments on the existing financing already on the property. Generally if the loan payments are being made per the terms of the loan, the foreclosure process (Which is what would happen if they call the loan due) is too costly, and simply doesn't make sense.
well obviously this guy was absent the day they reviewed sub-2's in school lol hey I am from Cleveland, and my aunt lives in Novelty--smal world I reckon, just thought i'd throw that in, but sorry don't know any attorney's like you need.
[addsig]
It depends on what you mean when you say "Assume the loan". In the old days, (Assumable loans), you could essentially just inform the lender that you were taking over the responsibility of the loan. There was no qualifying, and the paperwork was just modified to put your name on the documents.
In the late 80's, Non-Assumable loans were born. These loans have a DOS (Due On Sale) Clause that essentially states that the lender may at their option decide to call the loan due and payable if there is a transfer of title. The key verbiage here is that"The Lender May At Their Option Call The Loan Due". This does not mean that they will, It does not mean that it would be worth the effort and/or expense to do so. It simply states that they may do so.
Quite often investors will take a property "Subject to" the existing financing. Essentially this means that the property owner will sign over ownership of the property, and the investor will start making the payments on the existing financing already on the property. Generally if the loan payments are being made per the terms of the loan, the foreclosure process (Which is what would happen if they call the loan due) is too costly, and simply doesn't make sense.
well obviously this guy was absent the day they reviewed sub-2's in school lol hey I am from Cleveland, and my aunt lives in Novelty--smal world I reckon, just thought i'd throw that in, but sorry don't know any attorney's like you need.
[addsig]