Legal Question in Real Estate Law in Florida

Assumption of Mortgage?

What form would a person need if they were going to move into a place and pay the mortgage in another's name, subsequently taking over the note and changing ownership legally at a later date??

Asked on 11/14/07, 10:36 pm

1 Answer from Attorneys

Scott R. Jay Law Offices of Scott R. Jay

Re: Assumption of Mortgage?

NOTE: This communication is not intended as and should not be interpreted as legal advice. Rather, it is intended solely as a general discussion of legal principles. You should not rely on or take action based on this communication without first presenting ALL relevant details to a competent attorney in your jurisdiction and then receiving the attorney's individualized advice for you. By reading the "Response" to your question or comment, you agree that the opinion expressed is not intended to, nor does it, create any attorney-client relationship, nor does it constitute legal advice to any person reviewing such information, nor will it be considered an attorney-client privileged communication. If you do not agree, then stop right here, and do not read any further.

There is absolutely NO legal way to do that unless the loan specifically allows an assumption. Almost all mortgages and promisorry notes written in the past 25 years call for the loan to be due upon transfer which means the mortgage must be paid at the closing.

The only possible legal way to circumvent this is to enter into a lease purchase agreement whereby the buyer pays rent to the seller and receives a certain portion back at the time of purchase which is applied to the price. If you consider such a deal, you should have an experienced real estate attorney write the agreement as most do it wrong and therefore it does not serve the purposes it was intended for.

Scott R. Jay, Esq.

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Answered on 11/15/07, 12:40 am

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