As I am reading around I am wondering if this strategy occurs or is even possible. In buying a home for myself if I notice a house that has been for sale for a while or is for sale maybe through craigslist is it possible and what advantages/disadvantages to each side does taking over an existing loan present.
Example: Home has been on the market for a while at $1,750,000. Brand new home purchased 18 months ago for $1.6M. They are saying it is a motivated seller. Is it possible and beneficial to the owner at all for me to present taking over their existing loan?
Thought process on my end is I am picking up a house appraised most likely around 1.7M for under 1.6M assuming they have been paying their mortgage and put money down. Wouldn't then I be actually obtaining the home for (1.6M- whatever they have paid down so far)?
> Is it possible and beneficial to the owner at all for me to present taking over their existing loan?
The lender is unlikely to go along with this. Few "jumbo" loans are "assumable," which are the two key words you are looking for.
If they paid cash for it, seller financing may be an option (this was more common in the 80s when interest rates were in the double digits). Your realtor can pull a property profile and give you a yes/no to that question in 10 seconds and also tell you what the original loan amount was so you can "back into" what it needs to sell for to break even from the seller's POV.