Anyone in real estate? Question.

[Baitball Blogger]

Years ago the banks would finance assumable mortgages. That's when you could sell your house to someone who might not be able to get financing on their own, with the understanding that the seller would pick up the payments if buyer defaulted. That has changed, of course, and assumable mortgages won't fly today.

Here's my question: Back when someone assumed a loan there was a solid paper trail. In other words, the deed passed on in name to the buyer. So, today, what happens if someone takes on an assumed mortgage without a bank loan? Could they feasibly keep the agreement between the buyer and the seller without the need to file public records? In that case, could the seller and realtors consider that a sale has taken place, even though the name on the deed doesn't change?

[HopeAgain]

1. Not in Real Estate, but mortgages and titles can be complicated...

I am an attorney and I wouldn't try to do something like this without hiring an attorney that specializes in real estate.

[unblock]

2. not sure what you're asking -- the owner could keep the property and rent it out

but if the idea is to transfer ownership to a new buyer then there would have to be paperwork to transfer the deed, and the mortgage would have to be paid off or at least renegotiated because the old buyer would no longer own the house that's serving as collateral for the mortgage.

many mortgages don't even allow renting it out, they require the owner to actually be the occupant.


definitely talk to a real estate lawyer before trying this, but I wouldn't be too optimistic about anything working out the doesn't involve some kind of brand new mortgage.

[Baitball Blogger]

3. It isn't for my use.

Just wondered why we received flyers from realtors for the buyer and seller informing that the house in the neighborhood had sold when the public records haven't been updated to reflect the name of the new buyer. It's been over a month.

[unblock]

4. maybe just a timing issue?

realtors may claim something is "sold" when they have an agreement between buyer and seller even if the actual closing is months away.

[Baitball Blogger]

5. It's the only reasonable explanation, I think.

Though it appears that the old owner had moved out, and I thought someone moved in.

[unblock]

6. that is sometimes done prior to closing.

sellers are usually advised against this, but it does sometimes happen.

[Baitball Blogger]

7. Yup.

I would think they are operating with a buyer that they are confident will go through with the deal

[mnhtnbb]

8. The neighborhood received flyers because the realtors want to put their names in front of you

for marketing purposes. Hoping if someone else wants to sell, they'll either save the flyer
or remember the flyer and call those realtors.

It's a customary marketing technique of realtors.

[Baitball Blogger]

9. They included the address and photo of that particular house

SOLD.

Seems pretty clear that they used the sale to market their services.