- January 10, 2008 at 5:09 pm #255106
Make sure to have a lawyer take a look at the assumption contract. Our first house we bought as assumable, then found out at closing the sellers had put a clause in that stated if we did not get another loan within 12 months that fully released their original loan, we had to pay them a $200/month penalty. Generally, assumables are easy to get into, and the original debtor is still the person the bank goes after if payments aren’t made. I had a friend who sold her home and let the buyer assume her loan. Things went great for the first five years, then my friend got a letter from the bank saying no payments had been made and she was responsible. She had to go thru quite an ordeal to come out of that. So I think it’s become the “norm” for sellers to put in a clause like ours did. You might have to pay $50-$100 dollars to have a lawyer look things over, but it’s so worth the peace of mind. Good luck, I’m
sure it will all work out for you to get this house. Casey in GA
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