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How do I make my loan assumable?

I got some health news and I want to make sure things are in order. Whats the process? by flavell440 from Alsen, North Dakota. Oct 16th 2020 Reply

Bert Carpenter (BertCarpenter)
#1 ranked lender in Arizona - 2,300 contributions

First of all, I am so sorry for your recent health news. I hope and pray the diagnosis is wrong and you make a speedy recovery. To your question. You cannot make your loan assumable. The loan either has an assumption clause in it when it was originated, or it doesn't. An assumption clause allows you to sell the home to someone and allow them (under certain conditions) to be able to assume responsibility for the payments. Now, if you are concerned about allowing a family member to inherit the home and keep the existing loan, then that is very easy to do. Notwithstanding what some lenders may tell you, if someone dies and leaves the home to a family member either through a will or through a living trust, Federal laws require lenders to allow the heir to transfer the loan into their name. Some lenders will resist this, but the law is on the heirs' side. You will want to make sure the property is properly titled in your name (it probably is). You will want to make sure the language is in your will to properly convey the home and its loan to your designated heir. If you do not yet have a will, I strongly encourage you to find a legal representative to assist you in preparing one. ~ Bert Carpenter, The LoansA2z Team of NEXA Mortgage ~ NMLS 40586 ~ Licensed in Arizona, California, Georgia, Oregon, and Washington. Need help in other states? We've got you covered. NEXA Mortgage is licensed in 46 states ~ 480-889-9000.

Oct 17th 2020
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,409 contributions

You can't just make a loan assumable... The existing loan must already be an assumable loan. A VA loan for example is assumable, but your typical standard 30-year fixed is not. So if you don't have an assumable loan, you need to look into estate planning options. Adding someone to title to the home today is a cheap and popular option. If you leave the home to someone in a will, the current lender generally will allow that person to simply keep paying on the loan. As long as payments are made, there usually will be no issues. Get healthy... I lend in MN WI IA SD ND. Find me at - NMLS 274132

Oct 19th 2020
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