Check with Chase, they would know all the details of your loan.How can I have someone assume my mortgage?
If you can't afford to sell it outright, rent it until the economy takes a turn for the better. You can still make your mortgage payment, but you are in control, still.
Your lender can still hold you liable for the loan itself even after the assumption occurs. So, if the purchaser defaults on the mortgage and the lender forecloses, but the property sells for less than the loan's balance, the lender can sue the seller (you) for the difference.
Make sure you look into it before you do this... you are taking a risk. Especially considering the economic downturn and the possibility of your ';buyer'; losing their job, the house and it all coming back on you.
An assumable mortgage is usually pretty desirable, and often helps sell a property faster. You will have to check your mortgage documents and Chase regarding terms for assuming the mortgage, obtaining mortgageor's approval of the assumption, application forms, etc. Yes, you go through a closing, same as any sale.
Just because the mortgage is assumable does not mean it has to be assumed. A buyer could get their own mortgage, and at closing your Chase mortgage has to be paid off in full.
Normally the person would have to be an owner or co-owner in order to take over your mortgage. So if you and that person are to be co-owners, the other person would need to be put on the deeds of your house and then be added to the mortgage, with the mortgagee's prior consent. Otherwise, if the property is transferred out of your name to someone else, there would have to be a new mortgage. Effectively this would be a sale to a third party, so they would have to prove to the mortgagees that their income is sufficient to support a mortgage, and they might just as well look around and get the best mortgage they can, not necessarily with the same mortgagees.
Even if your mortgage is one which is assumable, ask yourself why anyone would assume such a mortgage, if the outstanding amount is greater than the value of the property. It won't happen.
Assumable mortgages are subject to the same credit criteria as are other mortgages. The only benefit in assuming a mortgage is an extremely attractive interest rate. Given current rates, that is very unlikely to be the case.
Government loans are assumable but you want to get a release from liability. Look at your paperwork. If is says it is assumable any time into the loan, call Chase back %26amp; talk to someone other than ';Customer service.'; You could also call your original Loan Officer to help in the matter.
Reread your mortgage carefully. Is there a ';due on sale'; clause? Assumable loans are very rare nowadays.
Assuming that you have a good interest rate and a little equity, having an assumable mortgage can be very attractive to buyers. (Everyone is looking for creative financing these days). You may not be able to break even by selling the place regularly (realtor fees and other costs add up). But, by using seller financing you can get free of the loan and the buyer can have a home with a bit of equity. Win-win.
If your mortgage is automatically assumable, chances are you have an FHA or VA insured loan. With this mortgage, you will need to get a release of liability in writing to make sure that you aren't held accountable should the new buyers default. The new buyers could be charged some closing costs and appraisal fees, but they must be kept low (around $500). Talk to your lender for the full details, they should be able to walk you through the process step-by-step. You may also want to look through the creative financing reference material below.
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