Updated almost 5 years ago on . Most recent reply
Assumption based loans
Does anyone have experience with doing a deal based on an “assumption based loan”?
What are the things to look out for?
Most Popular Reply
Just be sure to formally apply to existing lender and go through the process to obtain written approval to assume the loan. There will be formal loan docs for you to sign releasing original borrower from liability and transferring liability to you. Also be sure to understand if there are any reserves or impounds attached to the loan as you will be responsible for paying seller for those.