Assuming a Mortgage...RE Agent says can't be done

[Daniel Miller]

I am trying to purchase a fourplex.

My parents (due to my lack of credit history) have stated that they will assume the existing mortgage. I talked this over with my RE Agent and he said banks will probably not let me (parents) assume the mortgage and they will call the "Due on Sale Clause".

The mortgage was made in 2003. The residential interest rate at the time was right around 6.5%. I do not see why the bank would not let my parents assume the mortgage. My parents, specifically my Daddy, has a credit score over 800. Also, we COULD conceivably get a new, conventional mortgage at around 5%. I deduce that the banks would have a vested interest in keeping the mortgage, since the interest rate is considerably higher, than what they are currently making loans for. Is my reasoning off? Do banks typically not let qualified persons assume mortgages in this economic climate? I think my RE Agent might be wrong, but I would definitely like some advice. I am confused.

Thanks!