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What authorized form can be signed by the prev. owner to switch names on mortgage? Lender requires it.

by sunshnpd584 from , Virginia. Jan 25th 2016 Reply

Barb Lanis (BarbLanis)
#69 ranked lender in Illinois - 663 contributions

You cannot just "switch" mortgages between you and the current owner. If you are purchasing the home, then you need to obtain your own mortgage. This is evidenced by a deed that grants you ownership after you close on the transaction. If you are Assuming the current mortgage (generally only through a VA or FHA loan), you need to qualify for the loan. If you have have had a Contract for Deed (aka Land Contract), then that could be considered a refinance. Which is your scenario?

Jan 25th 2016
William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,727 contributions

No such thing. The seller cannot just sign something that automatically transfers the loan into your name. Mortgages have not been assumable (without qualifying) since 1988. Government loans are assumable but WITH qualifying.. and this is done through the existing lender on the property. You have to apply with them, provide all the supporting documentation, and go though underwriting and a closing. It's basically no different than purchasing a home except your agreeing to the existing loan terms rather than new ones.. If you just have the property deeded to you and there is an existing mortgage on it, then the lender can exercise their "due on sale" clause, which mandates that the outstanding balance be paid in full immediately.. if it's not, then the lender will foreclose. 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 NMLS# 226347

Jan 26th 2016
Derick Condron (rightstartoregon)
#31 ranked lender in Oregon - 598 contributions

You can not just switch the mortgage to a new owner. There are certain mortgages that are assumable in that case you as the new buyer/owner need to qualify with the current lender.

Jan 26th 2016
Kay Cleland (
#31 ranked lender in Colorado - 225 contributions

Great day to you.There is no way to switch a mortgage from the previous owners name to your name. You have to purchase the property and get a mortgage to be able to do that. If you are talking about a government loan, which you have assumed, then the lender should be able to assist you with documentation and qualification, etc. Thank you for your question.

Jan 26th 2016
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