Re: Nope - Posted by Stacy (AZ)
Posted by Stacy (AZ) on January 31, 2001 at 12:55:47:
Mike, assuming a loan through the lender places the loan in your name, with you accepting the liability, and with the loan being reported against your credit history. It also costs money to assume a loan this way.
Getting the deed subject to the underlying loan gives you ownership, but keeps the seller’s name on the loan, and on his credit report, even though you promised to make the payments on his loan. If something terrible happened, and you couldn’t make the loan payments, your credit history remains untouched, but the seller’s credit history would be in jeopardy. I’m definately not recommending that investors stop making payments they promised to make, but if you had no choice, your credit would not be affected. You could deed the property back to the seller if that would help.