About Eric Sexton Expertise All aspects of buying and selling homes including: General real estate questions, Contracts, Negotiations, surveys, title work and general questions about mortgages. I CAN NOT GIVE LEGAL ADVICE AND WILL NOT BE ABLE TO ANSWER QUESTIONS WHERE LEGAL ADVICE IS NECESSARY.
Experience
I have been a real estate agent for 6 years and a broker for 2 years.
Organizations National Association of REALTORS and Texas Association of REALTORS.
Expert: Eric Sexton Date: 4/23/2007 Subject: Assumable mortgage
Question OdMy wife and I are relocating back to Texas later in 2007 from California (job related). My Mother-In-Law owns a house in the area we want to live in. The property is worth market value of ~$140,000. She owes approximately $80,000 in a 4.875% fixed rate 15 year mortgage, which is assumable. She wants to have us assume the loan and title from her. How does one go about doing this? Do we just get the lender (Chase) to qualify us and draw up new mortgage papers? Do we have to open escrow to transfer title? Is there any income tax implications from doing this? Would appreciate any feedback. Thanks!
Answer Sean,
Verify that the loan is assumable. Most loans created in the last 5 or 6 years are not assumable. After verifying that the loan is assumable, your are on the right track. Contact CHASE and ask them what the process is. CHASE might have access to a title company that will charge you minimal fees. Make sure you get a title insurance policy in your name when doing this. As far as the tax implications, you will need to consult an accountant.
