Assumability of FHA Mortgages and release of liability?
I am receiving conflicting information. I have one mortgage broker stating that no conventional fixed rate mortgages are assumable and must be refinanced. The bank itself is giving conflicting information. The rep on the phone states they will send out an Assumption of Mortgage and Release of Liability package, while the rep that the broker deals with for that bank says they don’t have assumable mortgages. According to this site http://finance.yahoo.com/loan/mortgage/ask_the_professor/article/101609/Should_I_Assume_the_Sellers_Mortgage it would appear that if the mortgage is FHA insured that it IS assumable. Are all FHA loans assumable, or only those that do not have “due on sale” clauses? Who is right? The bank doesn’t even seem to know the answer. Located in NJ.
Are Freddie Mac mortgages assumable under any circumstances?