What liabilities does the original buyer have, if any, when they make the mortgage loan assumable?

I am wanting make sure that I am covered when I make my loan assumable to my tenants who live there now. I want absolutely no responsibility for the property/house/loan if something goes wrong.

Asked on July 19, 2012 under Real Estate Law, Arizona

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Okay, this is a little difficult to understand since it is unclear what exactly you are doing.  As far as I know no bank or lender has an assumable mortgage on the books any longer given the way the mortgage market took a plunge.  But if your mortgage is assumable and once the lender approves of the transaction and the loan and property transferred you should have no obligation at all.  PLEASE SEEK LEGAL HELP.  Good luck.


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