Taking over an underwater loanAs an Australian I have been unable to secure US finance at rate below 9% or Aussie finance at 8.5%. I would like to assume a loan (VA or FHA) to get a property with established finance at a reasonable interest rate.I would consider an underwater loan with an LVR of 105-115% as long as the rate and terms were reasonable and the property was located in a good investment area. This would allow the vendor to release from the underwater loan with the credit score unaffected, the bank would retain the business (possibly at an interest rate above current market) and not have to take the property to short sale.While I am oversees I have a great credit rating in Australia and could provide a credit rating backed by a world recognised credit reporting company. I know that assuming loans can only be done with the permission of the lender on some loans such as ARM, VA and FHA, and that this is no longer a common transaction but in the case of an underwater loan I believe it could be a win for all parties.Could anyone help me with this type of purchase? Thanks September 19 2012 - US00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.