ASSUMPTIONS ANYONE?
As credit is tightening and banks and lenders pull back from their easy lending days , will real estate practitioners and sellers have to resort to some creative financing?
I and several of my cohorts attended a 2 day continuing ed class over the week end, to fulfill the licensing requirements in Missouri. The trainer brought up a word I haven't heard very often in recent years - ASSUMPTION.
Those of us who go back a few years remember the 12% (or higher) mortgage rates, when a seller who had a VA or FHA mortgage at 6 or 7%, was guaranteed a quick sale by the buyer assuming the mortgage.
The interest rate is not the factor today, as it was then, but agents and sellers may want to consider finance options to make their property more saleable in a shorter period of time. This is where assumptions come back. Maybe pow-wowing with the lender to allow the current loan to be assumed. Perhaps the seller can take back a 2nd loan to smooth the path.
What are some of the other options out there?
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