I am afraid you are unlikely to qualify with the mortgage company to assume the mortgage. You can certainly try, but usually they are looking for the same qualifications as the original maker. Your best bet is probably to buy it subject to the mortgage and have the maker sign a letter to the mortgage company stating you are the agency who will be making the payments for him and to send all correspondence to you at address —. This has worked for me. Be sure the seller understands he will be liable, just as he most likely would be if you assumed it.
I am looking at a duplex tonight listed at $140,000. Comps in the area are around $150,000. The vendor is getting rid of his holdings and has a $130,000 assumable 1st mortgage at 5.5% interest ending in 3 years.
I am thinking of offering $130,000, assuming the mortgage, and offering the listing agent his commission in paper. The house is now rented at $1250 per month.
My credit is being repaired, but not yet ‘good’. Should I have a problem with assuming this mortgage? Any tips would be appreciated.
I would like to buy my son’s house via subject to a mortgage. I will pay him the difference in loan owed and asking price. The loan is 13 years left on a 15 year loan. What is the step by step procedure we need to follow and since the loan is still in his name will this prevent him from securing a new loan for the new house he wants to buy? thanks…