Posted by William Bronchick on July 18, 2004 at 09:28:02:
Yes, whenever you transfer property subject to the existing mortgage note, the obligations remains on the seller’s credit file until it is paid off.
Due on Sale - Credit Reporting - Posted by Stanley
Posted by Stanley on July 15, 2004 at 20:47:03:
I just read Brinchick’s “How to Beat the Due on Sale Clause”. http://www.creonline.com/articles/art-071.html
Here is my question.
Once Sammy Seller assigns his interest under the trust to the buyer, does the mortgage stay on Sammy’s credit report until the buyer pays the note in full?
Borrower still on hook - Posted by John Merchant
Posted by John Merchant on July 18, 2004 at 15:27:52:
And even if the buyer ASSUMES the debt, with express written permission from the lender, the original borrower STAYS on the debt!
I think most sellers who sell on deals wherein the buyer assumes the debt, do not understand this. They honestly believe that now that B has assumed their debt, they, the borrower are now off the debt.
Not true! Bank now has borrower AND assuming buyer on the hook and that’s how it’s going to remain until that debt is paid in full.