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If a mortgage cannot be assumed, is there another way it can be transferred to a family member?

by lparsley198 from Las Cruces, New Mexico. Jul 12th 2016 Reply


Jason Berman (jason@jbermangroup.com)
#102 ranked lender in Colorado - 25 contributions

It depends on the situation. I would consider selling it to the family member. In some instances you can refinance the family member onto the loan and it might make sense to do so (tap equity, lower rate, re-amortize mortgage). Find a good lender in your area and have them explore all options. You can always call me for information too. 970.455.4131 - Jason Berman

Jul 12th 2016
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Scott Fix (ScottFix)
#1325 ranked lender in California - 184 contributions

If selling or refinance are out of the question, your very best bet, is to consult a local real estate attorney for your best alternative. Seek SOLID answers from a well versed attorney. All the best, Scott.

Jul 13th 2016
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William J Acres (William_Acres)
#2 ranked lender in Arizona - 7,797 contributions

Yes and no.. but more info needed to advise you properly.. Specifically, what are the circumstances to why you wish to let a family member assume your mortgage? Are you behind on payments, or you can no longer afford the home? Are you being transferred and don't have enough equity to sell it? Are you at the end of your life and wish to move out of the home and want to let one of your children take it over?... Each one of these scenarios can be manipulated to meet your end goal. First, tax laws are very favorable to the heirs when a primary residence is willed to a surviving child.. so if this is your scenario, it's best to leave the property in your name and then will it to them.. (check with your estate planner for specific's).. If you are being transferred or can no longer afford the home, and you don't have sufficient equity to sell it, then you could always rent it to your family member.. or you could do a lease option.. this way, the deed stays in your name and you wont trigger a "due on sale" clause.. Also, lenders will allow you to ADD someone to the deed, so long as you are not removing anyone, typically this scenario is allowed.. but regardless, you will still be responsible for the mortgage payments.. The only way to remove yourself from the loan is to pay it off.. either by selling it, refinancing it, or just paying it off with your own funds.. Again, too much info missing to address your scenario directly.. but for the best advise, you should probably consult a local real estate attorney.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Jul 13th 2016
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