Sat, Jul 04, 2009
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assuming a loan |
janis
65 Posts
Member Since: 10/27/2002
Lincoln, NE
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Posted: 16:30 on 02-05-2003
I have recently sent a mailing to motivated sellers and have a list of want to be buyers. From the motivated sellers mailing, I received a call from someone who has a loan in place that can be assumed. From my list of want to be buyers, I have found an interested buyer in assuming this loan.
Can someone please tell me, if I were to work an agreement with this motivated seller to sell with my buyer assuming his loan, and the buyer to come in with $2000 to $3000 down, what type of contract should be used to have the seller agree to the sale of the loan assumption (buyer would not be receiving any monies over and beyond this assumption as there is hardly any equity in it). Then when I bring in the buyer, the $2000 to $3000 down would be my profit.
Is this the right way to work this type of agreement? And what might I need to put all of this together?
Thank you, Janis 
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Vern
467 Posts
Member Since: 04/15/2002
Lexington, KY
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Posted: 16:52 on 02-05-2003
Hello Janis,
This appear to be a bird-doging situation. I have not seen the agreement in JohnLocke's Bird-Dog course, but I bet it would give you the direction that you seek. The course is only $48. Good luck
[ Edited by JohnLocke on Date 02/05/2003 ]
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janis
65 Posts
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Posted: 17:16 on 02-05-2003
Thank you Vern,
I appreciate your reply. However, I need some information on this sooner than the time it takes to order the information.
Anyone else have a good response.
Janis 
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JohnLocke
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Member Since: 06/17/2002
Belmont, NC
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Posted: 17:30 on 02-05-2003
janis,
There are many loans today that are assumable, however with "qualifying", probably forgot to mention this to anyone. Since you metioned it had little equity I am assuming this is the type of loan your are talking about. So your buyer would be paying assumption fees, along with a credit check that is required.
The old fully assumable loans are far and very few in between. If they are out there the equity would be so much you would have to figure out how to take care of the sellers equity.
To answer your question you will need the proper State Specific paperwork to put this deal together which is recognized by Title Companies and the Laws of your State plus assumption papers from the current lender.
John $Cash$ Locke
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janis
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Posted: 18:55 on 02-05-2003
Thank you John Locke,
How are the assumption fees figured, and would I be the one to do the credit check, or would that be done by the mortgage holder?
Janis
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JohnLocke
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Posted: 19:08 on 02-05-2003
janis,
The lender (mortgage holder) would do the credit check, and assumtion fees vary by lender. The seller would have to contact the lender on what their charges are.
John $Cash$ Locke
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janis
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Posted: 19:29 on 02-05-2003
Thank you again, John Locke
Janis
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debratherealtor
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Posted: 20:43 on 02-05-2003
I would simply put it under contract to me from the owner and then sell my contract to the new buyer. The $2K-$3k could not then be seen as a commission to an unlicensed person.
Downfall could be if your buyer doesn't perform you could still be required to. In MA we use trusts to avoid this problem.
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janis
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Posted: 11:03 on 02-06-2003
debratherealtor,
Is this like a PacTrust? or a land trust where you, the buyer, are the beneficiary?
Janis
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