If you want someone to take over your mortgage payments or would like to remove someone from your loan, you can change the ownership of the loan through mortgage assumption. In order to do this, you need to submit an assumption application and get approval from the lender.
Reasons for a Mortgage Assumption
Many different circumstances can lead people to apply for a mortgage assumption, but the most common include divorce, death, removing a co-signer and adding a borrower. If you are struggling to make mortgage payments, assumption or loan modification are good ways to solve the problem before you face foreclosure.
What to Expect
You will need to provide the lender with all of your financial information to prove that you have sufficient funds to make mortgage payments and are serious about taking over the mortgage. The lender will likely request income details, tax returns, bank statements and a credit check. Additionally, the assumer should be prepared to answer the question of why he is taking over the loan. You should also prepare to explain why the loan is being given up. Once approved, the old loan will be cancelled and a new Deed of Trust will be created in the new owners name.
How Long Is the Process?
Unfortunately, mortgage assumption is usually a long and time-consuming process. Lenders do not like to change the terms of a mortgage, and as such, tend to ask many questions and request a lot of information before completing the application. Once your application is complete, it can take between 60 and 90 days for a final decision to be made.
How to Improve the Process
The best way to speed up the assumption process and ensure that it gets approved by the lender is to consult an experienced attorney. Schedule an appointment with our Miami foreclosure defense attorneys today and we’ll help you get your application approved while saving you the time and stress of handling it on your own.