The loan known as a take over mortgage is designed so that the conditions and terms of a loan can change hands between two borrowers. Thats to say, one borrower can transfer the mortgage to a new borrower. Its also called an assumable loan
People buying a home can take over a sellers mortgage when they complete the transaction. Usually, youll need to get the lenders approval before doing so. When you get a take over mortgage, monthly payments and interest rates come into your hands. Thats a big plus because it means its possible for you to save big money, particularly so if the existing loans interest rate is lower than the current one on newer loans. Be aware though that lenders are able to change the terms of the loan. So be prepared if that happens.
You also inherit liability when you take over a mortgage, along with the monthly payments and interest. If you dont make the payments, for example, the lender can foreclose. Also, if the property in question ends up selling for a lower price than the mortgages balance, the lender can sue you for the remaining difference.
Dont think of a take over mortgage as a walk in the park. Its not. You have to go through...
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