What can we do if my husband andI took over and are on a deed to a home that we just found outdoes not have an assumable loan?
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What can we do if my husband andI took over and are on a deed to a home that we just found outdoes not have an assumable loan?
The guy that is on the loan is not cooperating with us, what can we do? We have been renting for the last for years.
Asked on August 12, 2011 California
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
If the purchase of the home that you made does not have an assumable loan and the holder of the loan apparently is making threats of invoking the due on sales clause on the loan, your options are as follows:
1. negotiate with the holder of the mortgage (trust deed) with the due on sales clause to allow you to formally assume the loan and if so, confirm the assumption in a written agreement signed by you and the lender;
2. refinance the loan that the lender refuses to let you continue making payments upon due to the due on sales clause preventing its assumption.
If the seller represented to you before the sale that the loan was fully assumable and it is not, you could sue him or her for the costs of the new loan (refinance costs) and perhaps the costs of any higher interest rates over the loan's life.
You should consult with a real estate attorney regarding the situation about the loan that came with the property you bought about being assumable or not.
Good luck.
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