Owning a home comes with many benefits, but with these benefits come even more responsibilities. Homeowners are responsible for maintaining their house and repairing any issues that may arise. Most importantly, they’re required to make monthly payments toward their mortgage. For some, monthly mortgage payments are a huge undertaking, and many of these people struggle to make these payments on time. Those that are struggling to handle mortgage payments may seek a mortgage transfer to avoid defaulting and foreclosing on their house.
Continue scrolling to learn more about transferring a mortgage.
What is a Mortgage Transfer?
A mortgage transfer is the reassignment of an existing mortgage from the current holder to a different person or entity. Not all mortgages are transferrable. Lenders will often include a due-on-sale clause in their loans. This type of clause prohibits the seller from transferring a mortgage to a buyer. However, when mortgages are transferrable, the lender can approve (or deny) the person taking over the loan.
A person looking to buy your home may be interested in taking over your loan for many reasons. One being your interest rate could be lower than current rates. Another reason may be the buyer is trying to avoid paying fees or commissions that come with buying a new house.
Which Mortgages Can Be Transferred?
A mortgage must be assumable in order to be eligible for transfer. The mortgage lender will go through a checklist to verify the buyer meets specific criteria, such as adequate income, a decent credit history, and other factors that indicate the buyer can make timely payments.
If the homeowner is unable to transfer their mortgage, there are other options available. If you’re lucky, the lender may be willing to work with the seller on adding another borrower or owner to the mortgage. This action would allow the buyer to pay the monthly payments toward the loan. However, be cautious of buyers pushing you to keep your name on the loan and offering to reimburse you.
Mortgage Transfers Take-Aways
– Assumable mortgages are transferrable but are challenging to come by.
– Like all things, there are exceptions to the rule. Exceptions when it comes to mortgage transfers can include if the homeowner dies or is facing foreclosure.
– When transferrable, the lender must approve the person assuming the loan before transferring the loan.
– Unofficial mortgage transfers are never a good idea and could leave you in big trouble.
– If transferring your mortgage is not an option, consider refinancing or selling your home another way.
Contact Glast Heim Home Buyers
Mortgage transfers are rare, and, when possible, meeting the lender’s criteria is nearly impossible. Instead, sell your home to Glast Heim Home Buyers. If you live in the Fort Walton Beach, Florida, and are considering selling your home, get your cash offer today! When you sell to use, you avoid the hassles of working with an agent, making home repairs, and will not pay commissions, closing costs, or any fees. Contact Glast Heim Home Buyers today!