How do we obtain title in assumption

Question

I am needing clarification on assumption. We are purchasing a home from a wholesaler who closes tomorrow...I assumed the title company would have something to do with our assumption...but apparently that isn't correct? How will title actually pass to us? The wholesaler we are using is brand new...this is his first closing and our first time closing through assumption...add to that a title company that is hundreds of miles away, with a lack of communication.

Any info is helpful!

Wayne Brooks · Answer

@Angie Shires Just so you know, this is referred to as an Assignment Of Contract, not an Assumption. You should have had an executed Assignment Of Contract document executed from the wholesaler.  If the wholesaler was calling it an Assumption, they really are clueless.

Angie Shires · Answer

@Wayne Brooks, thanks for the clarification! I didn’t do my homework and I should have!!

Angie Shires · Answer

@Michael Lewis Lee thanks for the response. We finally got the wile mess straightened out...new wholesaler is just new and didn’t communicate well with title. Assumption has been sent over, I’ve since received title commitment and wiring instructions.

We are paying cash, I don’t think the title company does many assumptions...and he is using one a few hours away that I don’t have any relationship with...therefore no communication.

I have quite a bit to learn about The wholesaling business...I didnt feel I needed to know that much since it’s not my career of choice, but beginning to see that I do! Going to have to make some connections here for questions!

Thanks, again!

Michael Lewis Lee · Answer

Hello Angie!  Your question is not sounding very good.  Any deal made on assumption, the financing is just part of the deal.  If you are looking for a name it could be a "Subject To" where you get a deed that makes you the owner.  You could make the current debt payments made on time and do not discuss your deal with the loan servicer or they might use the "due on sales clause" and make you refinance.  As long as you make the debt payments on time you will get rarely caught, just know they can use that statement in the loan but know it is not legal.  It is just part of the debt contract and mainly used as a sales tool.

I would rarely trust a person that is new and without experience., always have a walk away clause, and there might be two closings where you never meet the owner. You may have already closed or delayed the closing or just walked away.  Good luck to you!