Profile picture for user8444152

Assuming a loan from nationwide

We bought a house in 2006 as a join venture with some relatives, one of which lived out the house, everyone was on title and gave a down payment, and paid monthly to a short fall on the rent (he lived their  and paid the going rent of 1800.00) and the total house payment came to 2500 and so the difference was paid by all parties.

at any they want to walk away, the are leading towards short sales, but of course  that will be leaving the rest of us to lose our investment.  They believe the house will never go back up. WE paid 450.00. At the time my uncle own it, and the houses were going for 550, and since my mom his sister were going to live there too, he reduce it to 450,000 then everything crashed. That is the 90715 area code.  Now my husband and I own  another properties in 90805 area, so we know if you hang in there long enough you can get your money back and then some.  

Sorry for getting side track, The lender is nationwide, does nationwide allow people to assume loans, now I heard a bad thing about assuming loans, is the paying of cash to the owner, for the equity, but in this case there is no equity.  I don't think we could assume the loan, as we have some bad marks due to hospital bills , but was looking to reach out to the third partner to see if they would do t his if it is possible.  YOUR THOUGHTS?
  • September 16 2013 - Lakewood
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Answers (4)

Profile picture for shapiroamg
Most loans are not assumable and even if yours was, you would need permission from the lender to assume. With so many people involved, this seems like a daunting path.

Have you engaged an attorney? It may be worth a conversation to see what options may be available.
  • September 16 2013
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Profile picture for Outer Banks N C
If it is a conventional loan it is not automatically assumable. Only FHA and VA loans are and you are correct about having to pay money to the owner to assume the loan. Since this isn't then it won't come to that.

I would start by getting a market analysis from 2 Realtors so you will know the value of the property. If it is less then what is owed on the loan then you are in a pickle and waiting could be your best option, otherwise short sale but that will just stop the bleeding. Since Calif is a non-recourse state you would not have to worry about the bank coming after money they lost, but the investment will be gone.
  • September 16 2013
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Tim and Rachel - even though the bank won't come after the money lost, don't the borrowers have to be aware that the bank will 1099 them for the shortfall and they will pay taxes on in the next tax year? I wonder how that would go - everyone on title gets a 1099?
  • September 16 2013
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Profile picture for wetdawgs
"that will be leaving the rest of us to lose our investment"    If you are underwater already, you haven't you already lot your investment?   At what point would you be willing to cut your losses and move forward?

 Assuming a loan is not automatic, you have to qualify (as you acknowledged).
  • September 16 2013
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