I am looking at buying a house though an assumed mortgage, what should I be aware of when signing the papers?
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I am looking at buying a house though an assumed mortgage, what should I be aware of when signing the papers?
I know that the previous owner will stay on the note also is there a way for this to improve my credit? Is there a way to protect my family that the old owner cannot come back and take the house back also do they have to be up to date on their payments for me to assume it or do I bring them up to date?
Asked on July 11, 2011 under Real Estate Law, Florida
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
My understanding is that you are in contract to purchase property in Florida and the selelrs have a mortgage on it securin a loan for its purchase which you as a potential new buyer can assume and make payments on as the new owner after ttitle is transferred into your name?
If this is the situation, you need to be very sure that the mortgage existing on the property allows assumption by a third party in the event of sale and that you can continue paying on the mortgage without any future claims that the mortgage is now due and payable by the mortgage holder. The best way to make sure is to contact the mortage holder and confirm the assumption of the mortgage in writing, preferably bwith a leter from the mortgage holder.
Assuming you stay current on the mortgage on the assumed loan if the proposed sale goes through, the prior owners would have no recourse against you in taking back the property.
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