Re: about this mix up. - Posted by Ed Copp (OH)
Posted by Ed Copp (OH) on July 19, 2001 at 21:30:00:
Generally “release of liability” that is discussed in the flipping situation is from the Lender. Usually this requires a credit check and often a complete loan application just as if the buyer were purchasing using a new loan. Lenders regularly charge a one point (one % of the loan amount) for this service, sometimes more.
The way to keep from assuming the liability from the seller is to simply not assume it. It sounds too simple, but when you purchase “subject to” the existing financing, you assume NO liability for that loan. You do not have any liability going in, so do not assume any; and you never will have it.