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Beata, Home Buyer in

Are mortgages in california assumable?

Asked by Beata, Sun Jul 15, 2007

Help the community by answering this question:


Hi Beata, Most of California mortgages are not assumable and have "due-on-sale" or "due-on-clause" clauses. You need to check it with a specific lender, however. "Due-on" clause allow lenders to revise interest rent and other conditins if a property is transferred. Please let me know if you have more questions. Mowisz po polsku?
Web Reference: http://www.cimpler.com
2 votes Thank Flag Link Sun Jul 15, 2007
Artur Urbans…, Real Estate Pro in Burlingame, CA
Assumable mortgages are hard to find. However, as the rates rise above their lows we may see an increase in mortgage assumptions.
Assumable mortgages aren’t a free ride: you still need to qualify for the loan and you may have to pay closing fees, including the costs of the appraisal and title insurance.
3 votes Thank Flag Link Sun Jul 15, 2007
You will find that You would be able to add your name to the loan,but it is unlikely that the lender would release the current borrower from responsibility, and their name would remain on the loan. As mentioned in previous answers the loans now, and have done for some time carried a due on sale clause, and the lender will become aware the change when the insurance is altered to another name.

Should you add your name to the loan the current home owner would have to cover themselves legally just in case you should default in your payments. I have never done this with any of my clients,but I am fairly certain that a good real estate attorney could draw up a document that would protect the previous owner. However to give the previous owner that sort of protection would probably not be to your best advantage.

I would say that if you can afford the home then with the current rates of interest you would be better to just get a new loan. Keeping in mind that you would have to qualify for that loan. and if you can qualify it is possible to secure a loan with a very small down payment , although you would have to pay PMI (private mortgage insurance). But if it your desire to own a home of your own, and you do not have a large down payment it would be a much better way to go than putting yourself in a position where the loan could be called by the bank and you lose out.

Kind regards, Bernard Goodman Broker/ Owner Integrity Realty Ca Lic# 00693084
0 votes Thank Flag Link Wed Dec 4, 2013
Beata, Most homes are not in a situation where an assumption even makes sense because many people selling owe more for the home than it is worth. No one asked why you want to know if the loans are assumable. I would wonder why? If you are negotiating a private transaction because someone offered you to just take over their payments, get your self some good legal assistance before you go that route. Years ago, when rates were high, many people used all inclusive trust deeds to allow the buyer to take advantage of the sellers loan until such time as it made sense for the buyer to refi. These can still be tricky because as Artur said, there can be a due on sale clause. If the lender were to find out that the loan was being assumed by another, usually they only find out if the payments become behind but that does happen, then the lender can call the note due, all due and payable on demand of the lender. So, be really careful and get professional and legal advice because if it is handled improperly you could also find yourself paying for something that you dont have any rights to. Good luck!
0 votes Thank Flag Link Sat May 31, 2008
Almost all mortgages in California are assumable, as long as you are willing to go to the lender and qualify for it. It is a myth that they are not assumable. Problem is, the lenders charge a lot of money for assumption fees. It is almost never worth it.
0 votes Thank Flag Link Wed Apr 23, 2008
That is not a state issue, it is up to the mortgage lender on whether or not their notes are assumable.
Web Reference: http://getprequalified.com
0 votes Thank Flag Link Wed Nov 14, 2007
Dziekuje Beata. Nie wachaj sie zapytac o cokolwiek. Chetnie odpowiem.
Web Reference: http://www.cimpler.com
0 votes Thank Flag Link Mon Jul 16, 2007
Artur Urbans…, Real Estate Pro in Burlingame, CA
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