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Family to Family Loan Assumption

My sister and I bought a house together back in 2004. We've had our ups and downs since then and have finally decided to part ways. I need to get my name off the loan and the deed (it almost feels like a divorce but not so easy). Will a loan assumption do the job? In my understanding a loan assumption is the same loan you had together, it just removes one name off and places the liability on the person assuming the terms. Is this correct and will I be completely released of liability? Finally, what fees are usually associated with this process? I'd be going through Chase. Thanks all!
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May 03 2010 - Sacramento
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1st the loan would have to be assumable.
2nd you would have to sell your interest to your sister.

Is the loan you have asuumable?
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May 03 2010
Profile picture for April1975
I have been told by Chase that it is assumable. I have no money in the home. She is the one that put the down payment on it so she would owe me nothing to take it over...
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May 03 2010
you would still have to sell your interest to her and she will have to qualify, call chase to see what they will need.
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May 03 2010
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Is she qualified to carry the loan on her own?
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May 03 2010
Profile picture for April1975
She is qualified to carry it herself. I also have the loan assumption package with the requirements. Problem is, I cant tell if it means a new loan or actually taking over the existing loan... also Chase is being very vague about details or cost. They won't give me details until we apply and I dont want her to apply if it means her terms will change or there are a ton of closing costs.
P.S. I don't know what selling my interest means...sorry. With everyone at Chase being so "clear as mud" I don't feel well informed which is why I'm here. Thanks again!
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May 03 2010

Chase should be able to spell out the terms of the assumption to you.  It might also be spelled out in your Deed of Trust.  Do you have an old pay option arm that your sister will take over or an FHA loan?  Most loan assumptions that I have seen only have a cost of around $750.  There are not many loan types that are assumable so I would be a bit wary.  Is Chase currently servicing the loan or do you make the payments to someone else? 

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May 03 2010
Profile picture for April1975
Good info! Chase and my sister went through a loan modification so she could afford it on her own. She's past the three month trial period and is now happily and easily into her permanent loan which she pays to Chase. It's a fixed rate.
Chase told me on the phone she could assume it so I'm also assuming it will go through. Unfortunately Chase is not spelling it out... Every person I talk to there gives me a different answer. Very frustrating.
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May 04 2010
I'm not sure I've ever seen an assumable Fixed Rate Mortgage.  Sounds like you'll have to be persistent w/ obtaining your clarification thru Chase. I'm guessing you can simply complete all the paperwork and forward to Chase for review before doing any final sign off or making any pymt.
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May 04 2010
 
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