Re: Assumable mortgages - Posted by Bill Gatten
Posted by Bill Gatten on January 24, 2000 at 12:59:28:
Most loans are “assumable” per se to some degree (even when the contract would say otherwise, they can often be restructured, streamlined, or negotiated). However, as Dave pointed out, with the exception of some VA loans and a few FHA loan types, they are largely assumable only by prior written permission and full credit approval (and payment of loan points) by the lender.
However…through the use of a 3rd party land trust conveyance (ie., PACTrust) virtually ALL loans are “assumable” without unduly comprising any lender’s due-on-sale clause or negatively affecting the integrity of the property’s title (this of course excludes bona fide Land Contract loans, as the “borrower” in a land contract is not the title holder “owner” of the property).