Private Lending & Conventional Mortgage Advice

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Troy Froistad
  • Investor
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How do you assume a SFR loan?

Troy Froistad
  • Investor
Posted May 19 2022, 09:34

Hi there,

I have an opportunity to assume my neighbors loan.  It is a single family home. Nothing fancy. I am looking to do this transaction as soon as possible.  What steps do I take to make this happen?  His taxes and insurance are escrowed. How do I handle that as well?

Thanks,

Troy

Lincoln, Nebraska

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Kevin Luttrell#5 Private Lending & Conventional Mortgage Advice Contributor
  • Lender
  • Orange County, CA
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Kevin Luttrell#5 Private Lending & Conventional Mortgage Advice Contributor
  • Lender
  • Orange County, CA
Replied May 19 2022, 11:59

@Troy Froistad Most mortgage loans these days cannot be assumed. Have the seller check with his lender and see if they allow loan assumption or not. 

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Chris Mason
  • Lender
  • California
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Chris Mason
  • Lender
  • California
ModeratorReplied May 19 2022, 13:32
Quote from @Troy Froistad:

Hi there,

I have an opportunity to assume my neighbors loan.  It is a single family home. Nothing fancy. I am looking to do this transaction as soon as possible.  What steps do I take to make this happen?  His taxes and insurance are escrowed. How do I handle that as well?

Thanks,

Troy


 Step 0, confirm that it's an assumable loan. Very few are.

Step 1, call their loan servicer and say you want to assume it.