Assuming a mortgage

[Denean Smith]

I am purchasing a house from a private seller and they are ok with me taking over their payments. I know some banks can require the payment in full once title transfers over. I live in state of Ohio and the mortgage currently sits with TelOhio credit union. I am looking into a real estate attorney but has anyone done this before? Do I need to get the bank involved or is it just a contract between me and seller?

[Wayne Brooks]

Well, you're not Assuming the loan....that is typically only allowed on fha/va loans and requires you to qualify with the bank, just like for a new loan. You are buying Subject To the loan. Yes, there is a possible due on sale risk. The general advice is to Not notify the bank...get a limited POA to deal with the loan from the seller, and have them sign the appropriate disclosure about the risk to them in doing this.