My partner and I have an opportunity to purchase a home in houston. The owner still owes on the house, but, says he is willing to let us "take over" his mortgage.
We are not really familiar with the process. How does it work? If he still owes $200k on the home and has 20 years left to pay it off, what has to take place for us to "take it over"? What do we have to do with his bank?
Any help appreciated.
This is generally called a "subject to" deal because you're buying the property subject to the existing mortgage. You buy the property and start making payments on the existing mortgage. This is not an "assumption". In an assumption you qualify for the loan with the lender and become the actual borrower. In subject to, the seller remains as the borrower and you just make the payments. There are assumable loans, IIRC VA loans, can be assumed. But most cannot. Buying a property without paying off the loan usually violates the "due on sale" clause in the mortgage. This gives the lender the right, though not obligation, to call the loan. That is, the lender can request the loan be paid in full immediately. If you don't, they can foreclose. If you don't make the payments, the seller's credit will be affected and again, the lender may foreclose.
There are many, many posts on "subject to" type deals. Search for that term and you'll find much more discussion.