Can a Local Home Buyer Take Over Mortgage Payments?
When it comes to selling a home in Louisville, every seller’s situation is unique. Not every circumstance falls into a traditional transaction that involves the seller, a real estate agent, and a potential buyer. For instance, instead of selling your house the normal way, you may be looking for a buyer to take over mortgage payments so that you can get out of your mortgage.
Taking over mortgage payments is not the same as buying a home. In this type of transaction, the buyer simply agrees to assume the mortgage under the current terms without any disruption in payments. While this may not always be possible in a traditional sale, you can hand over mortgage payments to a local buyer in Louisville, Kentucky, if you are looking to sell your house fast.
What Does It Mean to Take Over Mortgage Payments?
In the lending industry, taking over mortgage payments is known as an assumable mortgage. An assumable mortgage allows a local buyer to take over your mortgage either as-is or with small loan modifications. Once you complete the transfer, the buyer assumes the payments, freeing you from further liability.
If the buyer assumes your mortgage, they agree to take on the remainder of the debt. In a traditional sale, assumable mortgages are common in divorces when one spouse transfers ownership to another spouse. During probate, a beneficiary may allow another family member or beneficiary to take over mortgage payments.
How Does a Mortgage Assumption Work?
Even when a cash home buyer agrees to take over your mortgage, the process can be complicated depending on the loan terms, the lender’s flexibility, and your current situation. Essentially, the lender must approve the buyer to agree to the mortgage assumption. Therefore, you need to sell your house as-is to a reputable local buyer who has established a solid reputation.
Lenders also require that your payments be current to approve the transaction. It can prevent you from selling your house if you are behind on your payments or facing bankruptcy or foreclosure. However, there is a way around this. If the buyer agrees to assume the delinquent payments as part of the purchase contract and bring the loan current, the lender may agree to the deal.
Also, keep in mind that local home buyers often pay cash for your homes. They may pay the remaining balance outright, bypassing a mortgage altogether. So, even if your mortgage is not assumable, you may still be able to sell your house for cash and get out from underneath the loan with zero strings attached.
What Are the Benefits of an Assumable Mortgage?
An assumable mortgage creates a win-win for you and the buyer. There are several benefits of allowing a home buyer to take over mortgage payments, including
- You get out of the mortgage quickly with no strings attached.
- Your credit score will not be affected if your payments are current.
- You can sell your house as-is – no repairs or renovations necessary.
- You pay little to no closing costs since you are not selling the house.
- You avoid the hassles associated with a traditional sale.
An assumable mortgage works well when you are in tight situations where you need to sell your house fast but can’t seem to unload the property on the market. Local home buyers can work with sellers to take over mortgage payments in all types of situations such as
| Bankruptcy | Foreclosure | Forbearance |
| Divorce | Downsizing | Relocating |
| New job | Inherited house | Rental properties |
Why Should I Work with a Local Home Buyer?
One of the biggest challenges to an assumable mortgage is finding a qualified buyer who can take over your mortgage payments. I addition, there are several reasons why working with a local buyer is a smarter option than hiring a real estate agent to sell your home.
Transfer Your Mortgage Fast
In a traditional home sale, it can take 60 to 90 days to sell your house. Finding a qualified buyer to take over your payments can take even longer. If you need to relocate, finalize probate, or relocate for a new job, you may not be able to wait that long. A local home buyer can take over your payments in only a few days.
Bypass a Traditional Sale
A local buyer who can take over your home loan allows you to get out from underneath the mortgage without selling your home on the market. You do not have to find an agent, list the house, make repairs, show the property, find a buyer, or close the sale. All of that goes away when the buyer assumes the loan.
A Guaranteed Transaction
A regular buyer may not qualify for a mortgage assumption. You may go through several prospects before the lender finds a qualified applicant. A local home buyer is a professional that has worked with lenders in the past. They have established a reputation based on past performance. Your transaction is virtually guaranteed.
Contact We Buy Real Estate to Sell Your House Fast
Are you ready to sell your house fast? If so, contact We Buy Real Estate. We are local home buyers in Louisville, Kentucky. We can look at your property, make a fast cash offer, and close the sale in as little as seven days. Call 502-458-2722 to get a fast cash offer.