@seratonin wrote:
I have been reading online about the assignment of mortgages by individuals to sell their homes quickly. It is hard to tell whether this is an accepted practice.
The positive articles seem to be written by investors who do this. What would a mortgage lender think about this process? Would it be accepted down the line when one's credit is being evaluated? Has anyone had experience with this practice? Thanks for any information.
An assignment of mortgage is done from Lender A to Lender B.
Are you saying that a buyer wants to "purchase" your home without getting his own mortgage or without getting an approved mortgage assumption from the current lender?
If you sell your home to someone and the mortgage is not paid off or officially assumed with a release of liability given to you by your lender, than you are still on the hook for the loan. You still have full liability for repayment of the loan. You ask how a mortgage lender would look at this: if you don't have the written approved mortgage assumption with release of liability than they will not look at it in a good way. The type of "assignment" you are referring to actually sounds like an investor is trying to take over your loan payments without qualifying for the loan. It puts you in a very difficult position as you are still liable for all loan payments. If that buyer fails to pay, your credit is negatively impacted. Even if that buyer continues to make the payments on time, if you try to get a loan for another property, the payment will be included in your debt ratios and may keep you from getting another mortgage.
