archive search failed: non-qualifying assumeables - Posted by rayrick

Posted by rayrick on April 12, 1999 at 12:33:42:

blush, my bad. Still, you’re right about the timed out thing. I seem to have this problem whenever I search, so the spelling was not my first suspect.


archive search failed: non-qualifying assumeables - Posted by rayrick

Posted by rayrick on April 12, 1999 at 08:37:51:

I haven’t been able to successfully search the archives for quite a while. I just get timed out. Dang.

This is another topic that I know has been covered, but I’m afraid I can’t recover the info. I’m meeting a seller today who I THINK has a non-qualifying assumeable. (She said she bought the place 11 years ago, so it’s gonna be close).

Is there any downside to just assuming the loan, vs. trying to do a subject to deal? The seller would clearly prefer the former. A post below suggested doing it in a land trust or a corp to keep it off your credit report. Fine, I can do that.
Other than that, is there anything I should be taking into account?


Re: archive search failed: non-qualifying assumeables - Posted by Michael Murray

Posted by Michael Murray on April 12, 1999 at 12:15:45:

Most of us who have tried to search the archives have had little or no luck before getting timed out. I think the Vaughan’s are aware of the problem and are researching ways to beef up the system to handle the huge volume of data in the archives. BTW you might check the spelling of the word “assumable” when you search. You may be coming up with nothing because “assumeable” is not a word.
Good Luck,
Michael Murray

non-qualifying assumeables - Posted by JPiper

Posted by JPiper on April 12, 1999 at 09:06:41:

Just because a loan is 11 years old doesn’t mean it’s “non-qualifying”.

FHA loans originated prior to 12/15/89 are nonqualifying. VA loans originated prior to 3/1/88 are non-qualifying.

The above loans may be assumed by “simple assumption”, meaning that you fill a few documents out?but aren’t required to “qualify” with the lender. If you assume in this way the seller will retain an ongoing liability, the length of which would be determined by the type and date of the loan. You will have inserted yourself into the chain of liability for the loan. If you take title in a corporation or trust this will alleviate that particular problem (personal liability). Your assumption however will enable the seller to qualify for a new loan without reflecting a contingent liability in terms of the income guidelines.

A subject to assumption is no different on this type of loan than any other regarding the seller’s liability or yours?..except that in this case there is no due on sale clause.