Need help asap with a FHA assumption

[itzateach]

I am selling my home. I owe roughly 309k. Someone called tonight and is interested in assuming my loan. I have an FHA assumption at 6 percent. In order to legally sell this home with nothing coming back to haunt me, what do I need to do??

1. Do I call Countrywide and get an assumption package from them to fill out?

2. Do I call my mortgage lender and let them deal with it?

3. Is there any down payment or closing costs?

I guess I need the steps so I don't get screwed somehow. I know they need to qualify for the loan, so do they go to a lender and they deal with the assumption? HELP~

Message Edited by itzateach on 01-31-2009 07:11 PM

[WannaHouse]

I am not sure if any of the experts log in here on the weekends. I do not know enough about this to touch it..sorry. Hopefully, someone out there tonight does.

[Anonymous]

It reads:

Even if you sell your home by letting an approved purchaser (that is, a creditworthy owner-occupant)
assume your mortgage, you are still liable for the mortgage debt unless you obtain a release from liability from
your mortgage lender. FHA-approved lenders have been instructed by HUD to prepare such a release when an
original homeowner sells his or her property to a creditworthy purchaser who executes an agreement to assume
and pay the mortgage debt and thereby agrees to become the substitute mortgagor. The release is contained in
Form HUD-92210-1, (“Approval of Purchaser and Release of Seller”). You should ask for it if the mortgage
lender does not provide it to you automatically when you sell your home to a creditworthy owner-occupant
purchaser who executes an agreement to assume personal liability for the debt. When this form is executed, you
are no longer liable for the mortgage debt.

Message Edited by 1111mel on 02-01-2009 12:15 AM

[itzateach]

Anyone else? Do I get the form from my lender or what??? How does this work?

[ShanetheMortgageMan]

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@itzateach wrote:

I am selling my home. I owe roughly 309k. Someone called tonight and is interested in assuming my loan. I have an FHA assumption at 6 percent. In order to legally sell this home with nothing coming back to haunt me, what do I need to do??

1. Do I call Countrywide and get an assumption package from them to fill out?  What does Countrywide have to do with any of this?

2. Do I call my mortgage lender and let them deal with it?  Yes, you would need to contact whoever currently services your morgage and inquire about their assumption process.  There will be an application package just like they are qualifying for a brand new mortgage, except for in the two situations I had the buyer's down payment was the difference between the purchase price & assumed mortgage... so if the assumed mortgage was $100k and the purchase price was $150k, $50k is the down payment.  In most situations it's better just to have them buy the home with a new mortgage.  Why are they asking about assuming your loan at 6%?  That is higher than market rates today.  If someone approaches you and asks about assuming your loan it would be a red flag to me.. unless all other possible options were considered.

3. Is there any down payment or closing costs?  Yes.

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