Home Buying in 92626>Question Details

Darren Grego…, Home Buyer in San Diego, CA

is it possible to transfer a mortgage to another property to buy/assume that property?

Asked by Darren Gregory, San Diego, CA Wed Aug 3, 2011

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Suzanne Hall’s answer
The mortgage is attached to the property as a secured lien. Therefore, No transfer is possible because in the origination of the Promissory Note the terms and conditions have been agreed upon by the Lender and the Borrower. IF your Note states that you may Not have an UNKNOWN New party assume your existing Loan, the Lender has the option to Call the Note Due and Payable.....READ ALL THE TERMS AND CONDITIONS OF YOUR LOAN, DO NOT ACT WITHOUT THE ADVICE OF LEGAL COUNSEL.

Please feel free to call me with ANY questions 714-335-6623 http://www.SuzanneHallBrokerRealtor.com
1 vote Thank Flag Link Mon Sep 10, 2012
This question was asked more than 2 years ago ................
0 votes Thank Flag Link Fri Sep 27, 2013
You typically cannot "transfer" the debt from one property to another without qualifying for a new loan or having the seller finance a loan. As far as buying a property without paying off the note, not assuming, but purchasing "subject to" the loan and maintaining ownership benefits, that is a possibility.
0 votes Thank Flag Link Fri Sep 27, 2013
I am not sure I understand your question. If you have been approved for a mortgage and want to buy a different house then yes.

if that is not what you are saying see Suzanne Hall's answer.
0 votes Thank Flag Link Fri Aug 23, 2013
Hi Darren,

Not sure what you are trying to accomplish? If the current property is financed, then are you planning to pay it off? With interest rates so low, new loans are a better deal right now normally anyway.

Love to know more...but as the others have said, a mortgage is attached to a specific property.

Karen
0 votes Thank Flag Link Fri Aug 19, 2011
Darren,

There are relatively few "assumable" loans these days in the mortgage world. The only time that a loan is assumable is usually when you are purchasing a property and assuming THEIR loan, not taking your loan to another property. Some VA loans have an assumable feature....again, this is rare!

Sheri
0 votes Thank Flag Link Fri Aug 19, 2011
Darren,
The mortgage or "Note" stays with the property.
In California, the note is secured by the property.
Perhaps you are thinking of transfering your tax base with your new purchase?
Look up prop 90 and prop 60 if you are.

Harold Sharpe - Broker
So Cal Homes Realty
(951) 821-8211
harold@temeculacaliforniahomes.net
http://www.temeculacaliforniahomes.net
California Department of Real Estate Broker License # 01312992
0 votes Thank Flag Link Fri Aug 5, 2011
Darren,

The best way to clearly answer this is that a mortgage (or trust deed) is not its own entity. It must be attached to the title of a home as what's known as an "encumbrance." So, when you buy you take title of the home. It's your title. You then "choose" to encumber the title with a lien from the bank --- the mortgage or trust deed. Hence that lien is tied to that title until it is released by pay off or sale. The lien itself can be moved to another title or encumber another property unless the lienholder/lender permits --- which, by far, most will not.

Let me know if you have questions.

Rob Spinosa
rspinosa@rpm-mtg.com
0 votes Thank Flag Link Thu Aug 4, 2011
Dear Darren:
Interest rates are extremely low right now and since one cannot "transfer" the amount owned on one property to another there are other creative things that can be done. For example: upon sale and subsequent purchase of a home, transfer your tax base (Prop 60 and or Prop 90), refinance current property and use cash to purchase new property, sell your current place contingent on buying a new place.

If you need up-to-date loan programs, rates or advice call Don Parsons at Jayco Capital 949-428-3099. Best wishes,
0 votes Thank Flag Link Wed Aug 3, 2011
Hi Darren,

This type of loan is not available these days. How else can I help you out Darren? Talk to you soon..
ingrid Ski Realtor 949-874-0432
0 votes Thank Flag Link Wed Aug 3, 2011
Darren -

There was a product many years ago from E-Trade where you obtained a "Mortgage-for-Life" and you could transfer it from one property to the next and then to another. I do not believe that product is available any longer and even if it were, you would already have to have that mortgage product to transfer it. It was designed for people who sold and purchased every few years. The key factor is that you needed to sell the current property for more than the mortgage amount (no short sales) before you could transfer the mortgage to another property that had value in excess of the transferring mortgage.

Example:

You currently owe $400,000 on a house worth $500,000. You sell that house for $525,000
The existing $400,000 mortgage would be transferred to purchase a new property worth no less than $500,000 - basically LTV of 80%.

It was a simple mortgage product. Of course, income was re-verified, debt was reverified, and credit reports were ordered to make sure all was in-line. It cut a few weeks off an typical Underwriter process but did not eliminate it completely.

The short answer is that I've not heard of any programs similar to this one in many years.

What's your situation - how can we help?

Thom Colby
Broker / Owner & Certified HAFA Specialist
Thom Colby Properties
Newport Beach, CA
Moving Lives Forward (TM)
We NEVER DOUBLE-END Transactions in our Brokerage.
888-391-5245 Direct Cell
THOM@THOMCOLBY.COM
DRE# 01398570
0 votes Thank Flag Link Wed Aug 3, 2011
No. Your mortgage encumbers that of your current property and needs to be released in order for that property to be free n' clear. I assume you are trying to sell your current property or perhaps walk away without penalty? It's hard point you in the right direction without further information on your current situation, or what you are trying to accomplish. Let me know if I can be of further assitance.
0 votes Thank Flag Link Wed Aug 3, 2011
You cannot transfer a mortgage from one property to another as the trust deed is assigned to a property. It is possible to assume a loan in some cases. When you signed your loan documents and received a copy of these documents all of this information is buried within it. Your best bet is to take out the package and read it. If you have questions or problems understanding it, I would be happy to go through it with you and answer your questions. Good Luck!
Web Reference: http://sallypicciuto.com
0 votes Thank Flag Link Wed Aug 3, 2011
Darren,

You would need to clarity your question further. If you are talking about "assuming a loan," that is possible with condtions. If you want to "transfer" the mortgage to anohter property entirely, that is NOT possible. Let me know if I can assist you further

Joe Homs
Realty World
949-625-4533
Web Reference: http://www.thehomsteam.com
0 votes Thank Flag Link Wed Aug 3, 2011
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