Loan Assumption

Loan assumption allows a qualified buyer to take over your mortgage and payments.  In order to do so, the loan has to be an assumable loan (majority of recent mortgages are not) and the buyer usually has to be qualified by the lender in order to take over the mortgage.  Depending on when they were closed, VA and FHA loans can be assumed by anyone but these are for older mortgages – newer VA and FHA require lender approval.  Even if your mortgage is non-assumable, the lender may make an exception but this is at their discretion.  If your loan can be assumed, discuss with your lender and be sure you understand the requirements and any possible consequences. 

Remember, the time to consider these options is before your home has been foreclosed – you must act quickly!  If you have any questions or need help understanding the options available to you, please don’t hesitate to contact us.

All articles about foreclosure on this blog relate to foreclosure in the State of Texas.  State laws determine how foreclosures will proceed and the laws may vary from state to state.  It is highly recommended that you consult with an attorney regarding the legal consequences of foreclosure as well as seek the advice of financial and tax professionals.  You can also talk to foreclosure avoidance counseling agencies approved by HUD completely free of charge.