Rental Business: when buyer must “assume a mortgage” does it mean buyer does NOT need a mortgage broker?


business broker
Neil V asked:


Hi All,
When buyer is required by the seller to “assume seller’s mortgage” as part of the purchase, does it mean buyer does not need a mortgage broker to complete the transaction? will the RE agents take care, in this case, of the communication with the SELLER’S BANK regarding the assumable mortgage?
THANKS.

This entry was posted on Sunday, February 28th, 2010 at 12:00 am and is filed under Renting & Real Estate. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

3 Responses to “Rental Business: when buyer must “assume a mortgage” does it mean buyer does NOT need a mortgage broker?”

  1. sar Says:
    March 1st, 2010 at 11:41 am

    best to ask your attorney this question sar

  2. dusty_titus Says:
    March 2nd, 2010 at 8:55 pm

    Well, assumable mortgages left the building about 35 years ago, but you never know! That “assume a mortgage” is taken these days to mean buyer arranges his own with a new bank. If you think that seller is going to give you or your RE agent the name of his bank, and mortgage account number and allow you to deal directly with bank, to take over his “mortgage” and you will pay off the seller with cash for his equity or whatever he is asking for the house, Good Luck with that Idea. Nowadays, people are required to be “pre-approved for a specific amount of “mortgage” by their own bank, and then they go shopping for a house that fits their financial means. I take the “assume a mortgage” to mean that the house is not free and clear and you have to, Yes, get your own Mortgage broker. dusty_titus

  3. Sharon T Says:
    March 5th, 2010 at 3:24 pm

    Under rare circumstances where seller has an assumable mortgage, buyer might assume it but would also have the choice of getting their own mortgage. Sharon T

Leave a Reply