# Assuming a mortgage?



## CraterCove (Jan 24, 2011)

Anyone have experience with mortgage assumption? Does it mean you don't have to worry about a trailer being an older model and un-mortgagable? Are there different credit requirements? Do you get an interest update to a more recent level?

Anyone have dealings with a company called Ocwen? They seem pretty difficult to get any information from so far.

Thanks!


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## po boy (Jul 12, 2010)

I think Ocwen used to write sub-prime mortgages and would ahve their own rules..


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## kinnb (Oct 23, 2011)

Just read this recently about Ocwen... YMMV
http://www.consumeraffairs.com/news...-billion-for-its-servicing-errors-121913.html

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## po boy (Jul 12, 2010)

kinnb said:


> Just read this recently about Ocwen... YMMV
> http://www.consumeraffairs.com/news...-billion-for-its-servicing-errors-121913.html
> 
> Sent from my XT907 using Homesteading Today mobile app


 From your link:
Ocwen specializes in servicing* subprime or delinquent* loans and places a major emphasis on resolving delinquency through loss mitigation or foreclosure. In recent years, it has acquired competitors â including Homeward Residential Holdings LLC (formerly American Home Mortgage Servicing Inc.) and Litton Loan Servicing LP. It has also acquired the mortgage servicing rights from the portfolios of some of the countryâs largest banks.


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## kinnb (Oct 23, 2011)

Thanks, poboy!

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## CraterCove (Jan 24, 2011)

Thanks for all the info guys. It really helps in our decision on how to handle buying this property we are looking at. The guy who owns it is happy to take 10k cash if we assume the remainder of his loan--- I am concerned about what interest rate they may want us to pay. We make about 100k a year and the place total should cost 95k so we can pay it off quickly. I don't like even considering using a loan but it is what it is--- this is a second property to live in where we work and we own our farm outright so a small loan isn't a terrible problem I guess.


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## ganoosh (Dec 6, 2009)

Hi Crater,

I am not in the lending business but the main reasons for assuming a loan is either that you have poor credit and can not obtain your own or interest rates are rising and you can assume the original loan with the original interest rates (general done with VA loans). With interest rates still being very low as well as most non VA loans requiring you to qualify for the assumed loan there is not much of an advantage to assume someones a loan. If you can get your own loan just buy the property from the seller, his loan will be paid and you get to pick your lender. Hope this helps


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## po boy (Jul 12, 2010)

ganoosh said:


> Hi Crater,
> 
> I am not in the lending business but the main reasons for assuming a loan is either that you have poor credit and can not obtain your own or interest rates are rising and you can assume the original loan with the original interest rates (general done with VA loans). With interest rates still being very low as well as most non VA loans requiring you to qualify for the assumed loan there is not much of an advantage to assume someones a loan. If you can get your own loan just buy the property from the seller, his loan will be paid and you get to pick your lender. Hope this helps


 I believe the issue is the age of the manufactured home.


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## Jena (Aug 13, 2003)

I would be darn sure that you are assuming the loan and that he's not trying to scam you into paying him money only to buy a property that is going to be foreclosed. The last time I assumed a loan was in the 80's when you didn't have to qualify and interest rates were 15% and rising. Things have changed a lot.


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## CraterCove (Jan 24, 2011)

The loan assumption is going to end up being a bad deal for us. The interest is 8% and our credit rating is just below 720. Also, when we are done working here in Florida the trouble we have getting a loan for this place because of the age of the trailer--- we aren't going to be able to sell it.

Also, there is a motor cross track we didn't know about that has the loud speakers on early on the weekends. Freaks out the horses and wakes us up. But that's why I really like leasing a property before buying. There are too many things you can't know without living in a place first.


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