Assumption question - Posted by Anthony

Posted by Anthony on July 18, 2002 at 04:59:42:

I forgot to mention that it is not a bank loan, the previous owner financed the place for me. Do you think if she agreed to sign a paper releasing me of all responsibility that would help me out?

Assumption question - Posted by Anthony

Posted by Anthony on July 17, 2002 at 17:02:38:

Hello. I own a 3 unit bldg I need to sell. It has an assumable mortgage. I consulted an attorney to have all the papers drawn up, and he told me that even if someone assumes the mortgage, that I am still responsible for the loan. Like, if it burns down and the buyer has no insurance, the note holder can come after me for repayment. Is this the case? If so, is there anything I can do to protect myself (the attorney said there wasn’t)? I am in a tight spot and need to sell, but can’t have this looming over my head for the next 19 years! Any help or advice is appreciated.

Re: Assumption question - Posted by BIGDADDY(MD)

Posted by BIGDADDY(MD) on July 17, 2002 at 21:47:13:

Read thru your original loan doc’s to see what they say about an assumption. It should should state what the qualifications are for someone to assume the loan. You could also call your lender and ask them to look at your file and give you guidance on the liability issue. I have to say that if your lawyer read thru your loan doc’s then he/she probably read something that caused him to come to that conclusion.
Best of Luck.

Re: Assumption question - Posted by jeff

Posted by jeff on July 17, 2002 at 17:27:27:

hmmmmmmm. an attorney told you this. im not usually one to go against the professionals among us, but if it is actually assumed with the banks permission it is my understanding that you are free to go and the new borrower is now the only person liable for this. i retain the right to be wrnog here since an attorney is undoubtedly smarter than me, but this sounds like hes just as confused as you are.

theres about 50 replies coming behind mine for this question im sure, ill just wait to see the answers given.

i always prefer the subject to method for the liability risklessness (is that english? LOL). every time i have called banks in the past, i have always been told the loan cant be assumed, id think with as many calls as i make, id atleast run accross one that is assumable. but ive yet to find it. my guess is that after the assumption, your out.