Hello. I am wondering if there are any loan types that a ‘subject to’ investor can not take over? Are non-assumable loans one of them that can not be taken over? It would be a great thing to know so I don’t try to acquire homes with loans that I legally can not acquire. Thanks for your help!
Most mortgage loans are non-assumable…it is not illegal to assume the loans, it just makes the loan subject to be “called” (due and payable in full) by the lender if they chose to (they rarely chose to if you make the payments on time…)
Perfect Keith! Thanks a lot.
<<If the seller doesn’t want to leave the loan in their name is it possible to negociate with the lender to take over the loan by putting it in your name. If so, is this done often and are you suseptible to closing costs and origination fees this way?>>
Yes, you will need the current owner’s permission, though, most usually in writing. This wll be especially true if the loan is an older one at higher interest rates. Normally, you’ll have to pay an assumption fee of some sort.
Probably the folks in here that do a lot of these ($Cash$, etc.) can give you way better guidance than I.