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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Letting the cat out of the bag... Posted by Ward-CA- on February 25, 2004 at 8:29 AM In Reply to: Can a buyer assume a loan in which it's not under the seller's name but the previous owner that went in foreclosure. posted by Mirela28 on February 24, 2004 at 10:50 PM : Hi : I've a potential buyer that's interested in assuming the 1st loan which is around 97k and giving me 60k cash. : The problem is that we reinstated the 1st. so it'll not go in foreclosure, so it's still under the previous owner's name. : Can this potential buyer still assume the loan even if it's not under our name. I'm tempted to call the bank and ask: although, I don't think they'll be able to give me any answers since it's not my loan. : What advice can you give me? Should I be careful of such transaction? I've heard that's a quick sell in maybe 15 days, but what are the dissadvantages if any? : Thank you, : Mirela ================== Mirela, I would want to be very, very sure that your buyer has good enough credit to qualify in executing a formal assumption agreement with the lender and is willing to pay for the assumption fee and related costs involved. You don’t want to let the cat out of the bag, and disclose the intervening “subject to” sale to you, if your buyer isn’t going to be that acceptable to the lender. Your resale is not going to be a quick one at all. That’s because your buyer will have to go through the loan qualifying process and a current property appraisal will have to be done, etc. Hope this helps. Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Hi : : I've a potential buyer that's interested in assuming the 1st loan which is around 97k and giving me 60k cash. : : The problem is that we reinstated the 1st. so it'll not go in foreclosure, so it's still under the previous owner's name. : : Can this potential buyer still assume the loan even if it's not under our name. I'm tempted to call the bank and ask: although, I don't think they'll be able to give me any answers since it's not my loan. : : What advice can you give me? Should I be careful of such transaction? I've heard that's a quick sell in maybe 15 days, but what are the dissadvantages if any? : : Thank you, : : Mirela : ================== : Mirela, : I would want to be very, very sure that your buyer has good enough credit to qualify in executing a formal assumption agreement with the lender and is willing to pay for the assumption fee and related costs involved. : You don’t want to let the cat out of the bag, and disclose the intervening “subject to” sale to you, if your buyer isn’t going to be that acceptable to the lender. : Your resale is not going to be a quick one at all. That’s because your buyer will have to go through the loan qualifying process and a current property appraisal will have to be done, etc. : Hope this helps. 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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