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  Assumable mortgage tampa, FL

Created by:
Ruth Ugol, Other

Date: January 23, 2008, Number of Replies: 4


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Hi,

I have a buyer who is looking to buy home with Assumable mortgage. I looked at the MLS and I find only one in that area crrollwood, Lake  Magdalene, Tampa,FL. Is this possible?

 Would love some input, thanks to everyone who helps...........

RUTH UGOL
People’s Choice Realty Svc
8902 N. Dale Mabry Ste #103
Tampa, FL, FL 33614
Cell: 813 892-3774
E-mail: ruthugol@tampabay.rr.com
www.TampaHomes4Less.com



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Tom Scaglione Licensed Real Estate Agent,  Tampa,  FL

Date: January 23, 2008

Ruth,

 

There have been no non-qualifying assumable mortgages issued since 1986. So if you buyer is looking for a non-qualifying mortgage good luck. No there have been qualifying assumable mortgages issued since then but the buyer would need to qualifying just like a new mortgage. It would be better for them to go for a new mortgage rather than pay someone’s equity to assume a mortgage that they still need to qualify for and in most instances it would be at a higher rate than a new one.

.
Sincerely,

.
Tom Scaglione, ABR®, e-PRO®, REALTOR®
.
Avalar Realty of Tampa Bay, REALTORS®
1761 W Fletcher Avenue - Tampa FL 33612-1820

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From: Ruth Ugol [mailto:ruthugol@tampabay.rr.com]

I have a buyer who is looking to buy home with Assumable mortgage. I looked at the MLS and I find only one in that area crrollwood, Lake  Magdalene, Tampa,FL. Is this possible?

 Would love some input, thanks to everyone who helps...........

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Steele Propp Licensed Real Estate Agent,  Bloomington,  MN

Date: January 24, 2008

From: Ruth Ugol [mailto:ruthugol@tampabay.rr.com]

I have a buyer who is looking to buy home with Assumable mortgage. I looked at the MLS and I find only one in that area crrollwood, Lake  Magdalene, Tampa,FL. Is this possible?

 Would love some input, thanks to everyone who helps...........

As Tom stated non-qualifying assumable mortgages have not been around for years.  Even qualifying assumable mortgages are limited (FHA, VA and a few of the adjustables).

However, (and watch me get jumped for this) there is a technique call "subject to" that has been used successfully for years by many investors I know.  While not an expert, as I understand it you basically "assume" a non-assumable mortgage. 

Most use a trust in order to buy that seems to avoid the due on sale clause.  In the typical situation the property is in pre-foreclosure.  The investor buyers basically reinstates the loan.  While the lender could technically call it due the question raised is "what lender in their right mind would do that if the mortgage is being paid?"  No one using the technique has had a bank call a loan due.

And they also point out there is no such thing as due on sale police.

Again, this is not my area of expertise, but know people that use this on a regular basis.  Something maybe to look into.

 
Steele

Steele V. Propp
Foreclosure Specialist/ Loss Mitigator
Bank Owned Property Division
Schatz Group GMAC Real Estate
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Minneapolis, MN  55343
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freds@sempre.com

Date: January 24, 2008

 
>>Steele wrote in part re 'subject to':
>>While the lender could technically call it due the question raised is "what lender in their right mind would do that if the mortgage is being paid?" No one using the technique has had a bank call a loan due. And they also point out there is no such thing as due on sale police.<<

In my experience, lenders (e.g. Home Federal S&L) have aggressively enforced the due-on-sale clause. However, it was in a different interest rate environment in the early '80s when the note interest rate was much less than the market interest rate. If mortgage interest rates increase significantly, it seems to me that lenders would again look for the loans taken 'subject to'. Flags to the lender are such as the insured name on the homeowner or fire insurance policy, property tax bill and W-9s. I have a number of loans and occasionally get a request to re-certify the name and tax ID number on a W-9.

Problems for the seller could include negative credit rating depending upon the buyers actions. Loans generally show as debt on the seller's credit report and could affect the seller's ability to borrow in the future.

It seems to me that taking a loan 'subject-to' that contains a due-on-sale clause is an open invitation to fraud. YMMV.

Fred
fsalzer@sempre.com
Poway, CA

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Linda Grissette Licensed Real Estate Broker,  St. Charles,  MO

Date: January 25, 2008

However, (and watch me get jumped for this) there is a technique call
"subject to" that has been used successfully for years by many investors I
know. While not an expert, as I understand it you basically "assume" a
non-assumable mortgage.
Most use a trust in order to buy that seems to avoid the due on sale
clause. In the typical situation the property is in pre-foreclosure. The
investor buyers basically reinstates the loan. While the lender could
technically call it due the question raised is "what lender in their right
mind would do that if the mortgage is being paid?" No one using the
technique has had a bank call a loan due.
And they also point out there is no such thing as due on sale police.
Again, this is not my area of expertise, but know people that use this on a
regular basis. Something maybe to look into.

Steele,

Having personally lived thru a nightmare doing something similar in May
1980, I feel like I am an expert on this kind of thing.

Back then it was doing a Contract for Deed to get around the Due on Sale
clause in the mortgage. The agent we worked with (before Buyer's Agency)
told is "It's not risky, they do it in California all the time." A year
later, I got into real estate. My Pre-license class was taught by an
attorney who said he wrote the first of these in June 1980 and they are
very risky. At the break I told him he was wrong, that there were Contract
for Deeds written before June 1980. He asked for my address and then told
me that mine was the very first one written and closed on in the St. Louis
area.

For our safety, we had filed something at the court house about our
interests and were paying through a trustee at a bank. We didn't realize
that the lender, a Savings and Loan was on the "watch list", as they called
the S & Ls that were in trouble. The lender went to all the county court
houses where they had loans and searched the records. When they found
something like we did, they called the loan. So when the interest rates
were at record levels (18%) we had to find some way to refinance the home
that we could qualify for and afford, or loose the $15,000 we put down.
Luckily we did. (too long a story to tell).

I'm sure that as more and more lenders get into trouble, they will again
become their own due on sale police and start calling loans due and
payable. If I had not been in real estate, I would have lost my home and
the $15,000 equity....and we would probably have sued the agents and
companies who put is in such danger!

My advice to anyone thinking of doing a "back door assumption" with their
buyer or sellers: Don't put them at risk. Don't put yourself at risk.
It's not worth an extra sale.

Linda Grissette, JIM, GRI, LTG, ePRO Certified
Broker/Associate, River City Real Estate, St. Louis Area
Linda@Grissette.com http://www.FindStCharlesCountyRealEstate.com
Get the tools you need, http://www.RealEstateMarketingHelp.com

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