Help? Mortgage experts in here?

[Ross]

Question: Is it possible to sell a home with a deferred loan mortgage attached to the title? Does anyone know how this works?

 

[Tom F.]

The way it works would be that the buyer would need to assume the loan as part of the closing. However the lender would need to approve this of course, and depending on the loan terms or the buyer's credit score the lender may require that the loan be paid off at closing. Banks are playing hardball these days in ways you would not believe. E mail me Ross if you have other questions.

 

[Ross]

Thanks Tom. Let me get my head together and explain this a bit more in email.

 

[cp172]

Ross,

What is a deferred loan mortgage? I am a lender and have never heard of one unless you are talking about a reverse mortgage?To my knowledge you can not sell a house and allow any other debt to transfer. Your are welcome to email me if you like. I hope you are well.

Thanks,

 

[Bina]

I think it may be a regular mortgage loan where the payments have been deferred.
Some lending institutions will allow home owners to "defer" a few monthly payments in times of need.

 

[Ross]

The deferred loan is a loan that need not be paid until the title transfers. There is a mortgage placed on the deed title to insure the lender is paid at time of sale.

 

[cp172]

My guess is that the deferred mortgage will have to be paid off at closing. You could up the price of the sales price to cover the mortgage which is essentialy the same thing as the purchaser assuming the deferred debt. The purchaser would have to roll the amount into his mortgage.

 

[Jkm7]

A lender would agree to have no payments made for possibly dozens or more years?

Is it interest only payments with nothing toward principal or no payments at all?

 

[Ross]

A lender would agree to have no payments made for possibly dozens or more years?

Is it interest only payments with nothing toward principal or no payments at all?

On this deal, 0% interest rate deferred. No payments at all until change of ownership.

 

[Jkm7]

Theat's amazing. What a deal!

 

[Ross]

My guess is that the deferred mortgage will have to be paid off at closing. You could up the price of the sales price to cover the mortgage which is essentialy the same thing as the purchaser assuming the deferred debt. The purchaser would have to roll the amount into his mortgage.

That's the way I'm reading things too, but I have to make certain. I cannot afford the error in thinking on this one.

 

[catwoman]

Ross:

Does a radio station in your area have a financial program on Saturday/Sunday mornings with financial/mortgage experts fielding phone calls?

 

[Ross]

Ross:

Does a radio station in your area have a financial program on Saturday/Sunday mornings with financial/mortgage experts fielding phone calls?

Heck if I know, once the remote Queen is home, my electronics are no longer mine.

 

[catwoman]

Heck if I know, once the remote Queen is home, my electronics are no longer mine.

My radio must be very old -- we don't have a remote for it. It's an old stereo tuner or whatever they were called back when. Still connected to a Pioneer turntable that, sadly, needs a new belt.

 

[Dennis S]

Ross--I have access at a coffee shop for the moment, so I hope you see this right away. I am not an expert per se, but often have been able to figure something out. I am not clear--would you be buying or selling this property?

 

[Ross]

Ross--I have access at a coffee shop for the moment, so I hope you see this right away. I am not an expert per se, but often have been able to figure something out. I am not clear--would you be buying or selling this property?

Hopefully neither. What the question really pertains to is whether or not upon my death and execution of my will and title change, would it be considered sale of the property, where they could collect the deferred loan at that time of transfer to my spouse or children?

 

[Jkm7]

That is such an important question, Ross, do you want the lender to answer you directly? (and preferably in writing if the answer is what you want it to be.) I know it seems obvious but have you asked the entity that holds the paper?

 

[Ross]

I'm not going to guess at it. I'm simply going to call the attorney who drew up my Will and discuss it. This is too easy to make a BIG mistake on.

 

[catwoman]

I'm not going to guess at it. I'm simply going to call the attorney who drew up my Will and discuss it. This is too easy to make a BIG mistake on.

Excellent idea!

 

[cp172]

Ross,

This sounds like a reverse mortgage. There are pitfalls. I would get some advice from a third party not related to the mortgage company you are talking with. Since loan laws can vary from state to state I can not be much help. Your attorney should be a big help. Hope you are staying warm.