With rates at the current rate and assuming majority of landlords/homeowners refinanced in the 2-4% range over the last 10 years, I just started doing research on assuming a mortgage. After reading some older forum posts here and it sounds like a lot of people try to "sneak" it by the mortgage company and actually opens up the seller to risk. So the right thing to do is to talk through it with their current mortgage note holder and go through the underwriting process. To me this doesn't seem like such a big deal.
2 Questions:
Why would a mortgage company say no if you qualify for the loan amount?
Would the mortgage company allow the current owner to HELOC for the difference of the new purchase price and balance of the original mortgage?
With rates at the current rate and assuming majority of landlords/homeowners refinanced in the 2-4% range over the last 10 years, I just started doing research on assuming a mortgage. After reading some older forum posts here and it sounds like a lot of people try to "sneak" it by the mortgage company and actually opens up the seller to risk. So the right thing to do is to talk through it with their current mortgage note holder and go through the underwriting process. To me this doesn't seem like such a big deal.
2 Questions:
Why would a mortgage company say no if you qualify for the loan amount?
Would the mortgage company allow the current owner to HELOC for the difference of the new purchase price and balance of the original mortgage?
If you can find the noteholder, your way is best. Unfortunately the vast majority of mortgages are packaged in large portfolios and sold to wall street as mortgage-backed securities. Basically all mortgages since like 1987 have a due on sale clause. I think 1987 saw the last assumable mortgages.
Unless the mortgage of your seller is privately held, quiet sub2 and wraps are what we are stuck doing. The best we can do is honor the mortgage on behalf of the seller and make the payments no matter what.
Thanks for jumping in. The mortgages are packed in large portfolios and sold to wall street as a mortgage-backed securities, but the 'mortgage co' who is the loan servicer would be the one doing the underwriting correct? Would we be dealing with them?