One question that we are often asked by customers is œcan you take over my mortgage payments? Whether you are behind on your mortgage payments or you simply just want out of your house, taking over mortgage payments is a viable option, in most cases. Even homeowners with little to no equity in their home can take advantage of this kind of program. However, in order for this to work, certain conditions must be met. Sometimes simply buying the home without taking over the mortgage payments will work out better.
Taking over a homeowners mortgage payments is known as a mortgage assumption. In this type of real estate transaction, the buyer is going to simply take over the loan as it currently stands. What this means for the buyer is that the loan is going to be transferred into their name, but none of the loan conditions will change. Everything from the mortgage payment to the interest rate will stay exactly how it was for the original buyer.
Even if a mortgage assumption will work for your buyer, not all mortgages will qualify for this kind of transaction. In order for us to take over your mortgage payments your original contract must state it is an assumable loan, meaning the loan can be transferred to another person. If the loan says nothing about it either way, in most cases it is an assumable mortgage.
Even though a mortgage is considered to be assumable, it can also contain a clause that makes it unassumable. This clause is called the œdue on sale clause. This clause states that if the property is transferred over to another person then the entire loan balance must be paid in full. In some cases the lender might be willing to overlook the clause, but that is not something that you should ever count on.
Loans that are in default or near foreclosure can also be assumed, but the process is a bit different. If the original homeowner is currently facing foreclosure, the only way to stop the process is by bringing the loan up to date. In the case of an assumption, the new owner will need to make the loan current. This can be done by paying the entire past due balance or contacting the lender to work out some kind of repayment plan or even applying for a loan modification.
If you need someone to take over your mortgage payments, call us for a no obligation consultation.