Realtor · Denver, CO · Member since 2015 · 24 posts · 16 votes
Has anyone on here successfully assumed a seller's mortgage? I'm curious what the process is from an inside perspective. Are mortgage companies easy to work with on assumption? Or do they set pretty tough stipulations for being approved to assume?
Has anyone on here successfully assumed a seller's mortgage? I'm curious what the process is from an inside perspective. Are mortgage companies easy to work with on assumption? Or do they set pretty tough stipulations for being approved to assume?
Thanks!
Assuming a mortgage as compared to Subject To
When you assume a mortgage, you have to qualify the same way as if you applied for the loan in the first place. The lender is aware of you and you have made formal application. They can say "No".
Subject To is when you start making the payment for the seller. The lender normally is Not consulted about the arrangement. If the lender learns of the arrangement, they can demand that the loan be paid off. (Due on Sale clause in the loan agreement)
I only buy Subject to, but there is an art form to it. We provide training for instance. I never assume a mortgage. That is my preference, others will have their preference.