what is the meaning of “deed of sale with assumption of mortgage”?

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my parents had these house&lot loaned for many years now, until i learned that these property’s are not being paid regulary, supposed to be on monthly basis, and now on the foreclosure situation by the bank and/or the company who handles the property. i made some inquiries on how to be save these house&lot and i learned that they can still continue to pay it thru me and of course,also on monthly basis.if, for example,
I completely paid these house&lot, does the land title can be tansfered to my name. i made an inquiry on a lawyer and she told me that my parents should execute this ” deed of sale with assumption of mortage”. whats the use of these “deed of sale with assumption of mortgage”. does these “papers” automatically transfers their name to my name on the land title. if not, can i use these “papers” to transfer it from their name to my name.

  1. Reply
    February 14, 2011 at 11:30 pm

    It means that you assume ownership and also payment of the mortgage….since the transfer in ownership is thru a non-consideration sale then this would be the best way to do it…Otherwise, your parents sell you the lots for fair market value and the debts are repaid from the proceeds….

  2. Reply
    February 14, 2011 at 11:55 pm

    A deed of sale with assumption of mortgage means that they give you possession of the house and land, and you take on the terms of the mortgage. If they had to make ten more years of payments at $ 950 a month then you would pay $ 950 a month for ten years to fully own the house. The bank just wants someone to pay what is left on the loan. They don’t care who gets the house as long as they get paid. Your parent would lose all of their equity in this deal, and you would get equity on the cheap.

  3. Reply
    February 15, 2011 at 12:29 am

    If it is paid off, I do not understand why you are assuming mortgage. It is hard to understand your grammar.

    If you are taking up the mortgage yourself, the loans will be in your name, and you will not have title until they are paid off. The bank retains title until payoff.

  4. Reply
    Leo N
    February 15, 2011 at 1:18 am

    As justbeingher stated, it is difficult to understand your exact situation. After reading this post I am thinking:
    1. Your parents purchased their house/property from someone else using an assumption of the previous owner’s mortgage a long time ago.
    2. Your parents have been paying this amount to the seller.
    3. Now you found out that the previous owner has not been making those payments to the bank.
    4. The contract was never actually executed to change the title into your parent’s name.

    If the contract is still valid, execute it immediately. Also, all payments should be made directly to the mortgage holder, not the previous owner. The payments your parents have been making were technically rental payments, without a lease. Unfortunately, since there is no lease, there is very little you can do to try and recoupe the payments sent to the “previous” owner.
    If you do not have title to the property and do not have a contract to get title to it. Contact the owner and try to get a sales contract in writing. This contract could include (though I would not recommend it, now) an assumption of the current mortgage.

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