Posted by Brent_IL on August 18, 2003 at 18:56:49:
I believe that in all states one who purchases real property is legally bound to honor the pertinent contracts of the previous owner. In my opinion, she lied to you or she was repeating hearsay.
The decision to either get new financing or to take over the payments is based in costs. In 1985, mortgage interest rates were around 12% APR. If it’s the original loan, it will be expensive and a small portion of the selling price. If the seller has refinanced the terms might be better and the cash-to-mortgage less. If you can’t qualify for a new loan, the point is moot. You have to work with what you have.
99.99% of sellers want to be cashed out. The owner isn’t necessarily helping you. She gets the same whether you pay off the loan or you do not.