Lenders Making Trouble On Pre-1987 Mortgage - Posted by Warren

Posted by Mark (SDCA) on April 30, 1999 at 09:30:02:

If the note says that the loan is assumable, then IT IS. It doesn’t matter whether the lender "wants to cooperate."
If the note isn’t assumable, take title in a land trust.

Lenders Making Trouble On Pre-1987 Mortgage - Posted by Warren

Posted by Warren on April 29, 1999 at 21:15:47:

Working on getting a duplex that has an assumable mortgage
so the seller says. I asked the seller to tell me about the mortgage. He told me the balance along with the rate and that it was pre-1987 (sounds good) and that the lender
was trying to say that the mortgage is’nt assumable. He said he is going to straighten it out over the weekend and that we can proceed from there(agreed).

I am having a little brainstorm session on what to do if he
says the lender will not cooperate or would like for me to qualify. My credit stinks but if the deal works out like I want and know it will I’ll find someone else to partner with or even pay them.

However someone who wants to make a little cash may not want the liability forever so perhaps I can work up a good faith deal say to release that person after 12 months or maybe substitute some other form of collateral or sequrity for my bad credit. Any Ideas or experiences, please share.

Thanks In Advance

Sincerely Yours,

Warren

Read it! - Posted by hkCA

Posted by hkCA on May 01, 1999 at 21:02:48:

Carol is right. If the seller can’t or won’t give you a copy of the mortgage and note, go to public records and pull it yourself. Read it over carefully. If there is no language indicating that the loan is due on sale or that a buyer must qualify, then you should be able to assume the loan without the bank’s approval.

Re: Lenders Making Trouble On Pre-1987 Mortgage - Posted by CarolFL

Posted by CarolFL on May 01, 1999 at 08:27:25:

And the easiest way to clear up the question of the
assumability (?) of the note is to read it. The language will give you the answer no matter WHAT some
guy on the phone says.
Good luck,
Carol

Re: Lenders Making Trouble On Pre-1987 Mortgage - Posted by CarolFL

Posted by CarolFL on May 01, 1999 at 08:27:25:

And the easiest way to clear up the question of the
assumability (?) of the note is to read it. The language will give you the answer no matter WHAT some
guy on the phone says.
Good luck,
Carol

Re: Lenders Making Trouble On Pre-1987 Mortgage - Posted by Dave T

Posted by Dave T on April 30, 1999 at 16:20:09:

If your seller has a conventional mortgage, it may be assumable or it may not. If assumable, the assumption may be restricted to an owner occupant. I believe that FHA and VA loans in that time frame had non-qualifying assumption features, whereas, conventional loans did not always follow suit.

The mortgage assumption language may be written in such a way that assumability is at the discretion of the lender. In this instance, the loan is only assumable if the lender says it is.

Re: Lenders Making Trouble On Pre-1987 Mortgage - Posted by Dave T

Posted by Dave T on April 30, 1999 at 16:20:09:

If your seller has a conventional mortgage, it may be assumable or it may not. If assumable, the assumption may be restricted to an owner occupant. I believe that FHA and VA loans in that time frame had non-qualifying assumption features, whereas, conventional loans did not always follow suit.

The mortgage assumption language may be written in such a way that assumability is at the discretion of the lender. In this instance, the loan is only assumable if the lender says it is.