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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Taking over, subject to the existing lien... Posted by Ward-CA- on August 29, 2003 at 5:52 PM In Reply to: Ward: FHA loan & quit deed posted by Joel on August 29, 2003 at 1:41 PM : Ward. Have an owner with a 6 month FHA loan out on a house that cannot afford the payments any longer. House has $75,000 equity built in to it. Can I have them sign a Quit Claim deed or is the FHA loan to new. Will there be a penalty to be paid. Thanks. Joel -=-=-=-=-=-=-=-=-=-=-=-=-=-=- Joel, Any owner in any state has the freedom of selling their property, regardless of whatever loan they have on their property. The question really is, will the lender allow the buyer to assume their loan? Most lenders will allow it if the buyer qualifies creditwise and is willing to pay a couple of thousand bucks cash for the privilege of taking over the existing loan. That's when most buyers start to think of ways around the due-on-sale clause so they won't have to qualify financially and pay thousands of dollars to assume another's existing loan. One of the most successful methods of avoiding the due-on-sale clause in existing financing is the use of the THT (title holding trust). It's a ploy that fools the lender into thinking that the seller has put their property into the popular living trust, when in reality the seller has sold their property. Hope this helps. P.S. Let us know the state you're in when posting a question since sometimes it's germane to the answer we can give you. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward. Have an owner with a 6 month FHA loan out on a house that cannot afford the payments any longer. House has $75,000 equity built in to it. Can I have them sign a Quit Claim deed or is the FHA loan to new. Will there be a penalty to be paid. Thanks. Joel : -=-=-=-=-=-=-=-=-=-=-=-=-=-=- : Joel, : Any owner in any state has the freedom of selling their property, regardless of whatever loan they have on their property. The question really is, will the lender allow the buyer to assume their loan? Most lenders will allow it if the buyer qualifies creditwise and is willing to pay a couple of thousand bucks cash for the privilege of taking over the existing loan. : That's when most buyers start to think of ways around the due-on-sale clause so they won't have to qualify financially and pay thousands of dollars to assume another's existing loan. : One of the most successful methods of avoiding the due-on-sale clause in existing financing is the use of the THT (title holding trust). It's a ploy that fools the lender into thinking that the seller has put their property into the popular living trust, when in reality the seller has sold their property. : Hope this helps. : P.S. Let us know the state you're in when posting a question since sometimes it's germane to the answer we can give you. Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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