Some people will agree to take over your payments if they can’t qualify for a traditional mortgage loan themselves.

House Selling Tips- Watauga TX: One creative way to get out of paying your mortgage if you can no longer afford it is to assign your mortgage payments to someone else. This means that someone will essentially be taking over payments for you. They will become the owner of record when the house is paid off, but you will be relieved of the payment cycle that is causing you financial distress.

You will stay on the loan as the responsible party, which is not ideal as you will be liable if the new owner defaults, but if you cannot sell the house and this is a viable option you might not have much choice in the matter. It certainly beats repossession and a ruined credit score. The way it works is that whatever you owe on the mortgage is what you ‘sell’ the house for to the one who will take over payments. It has no real bearing on the amount of value your house represents in the current market. The only figure used here is what you still owe.

“The way it works is that whatever you owe on the mortgage is what you ‘sell’ the house for to the one who will take over payments.’

So if your mortgage balance is $365k but the home is only worth $325k on the current market, the buyer will be buying the house for the $365k that you still owe. Some people will agree to take over your payments if they can’t qualify for a traditional mortgage loan themselves. They want to buy a house and yet cannot get a loan so this could be a viable option for you both. They get a house and payments to make, knowing they will own the house at the end of the mortgage cycle. You get your house sold and are relieved of the payments you are having trouble making.

The advantage of selling the house at the cost of paying off your mortgage as opposed to what the current market value would dictate might outweigh the disadvantage of having your name remain on the mortgage as the responsible party throughout the life of the loan. It is not possible for others to assume your loan with the lender. The buyer would have to qualify for their own loan so this is an alternative way to sell the house if you are desperate to get out of the mortgage obligation. There are details to be worked out, of course, regarding the future sale of the house and other situations, but if you haven’t been able to sell this could be an answer.

Filed under: House Selling