How To Assume A Mortgaged Santa Barbara CDO Property
Mortgage, by definition, is a kind of debt in which the real estate that you will purchase will be used as a collateral or security in case you fail to repay the debt. However, there are cases wherein the debtor fails to comply the payment of his/her debt. When this happens, the property used as the security or collateral will be at stake of being taken even before owning it. In order to prevent this from happening and so as not to waste the payments that has already been made, finding a buyer for that property would be the best option. Most people may think that a property that has served as a collateral for a debt cannot be sold, but actually it is possible. This is what you call assumption of a mortgage.
How do you assume a mortgaged property in Santa Barbara CDO? Assuming a mortgage means paying a certain amount of money agreed upon by the seller on top of the amount that you have to pay for the balance of the debt. As the buyer, when assuming a mortgage, first, you need to know the conditions of the loan payment.
If you have agreed to the terms and conditions of the mortgaged Santa Barbara CDO property that you are going to assume, then the seller will be issuing you a “Deed of Sale with Assumption of Mortgage”. This is a legal form in which written therein are the details about what kind of property to sell, the amount loaned and the creditor, the amount you agreed to pay for the property, as well as the remaining balance of the debt that you will be assuming to pay. This document will be signed by both of you, the buyer and the seller, including also the signature of a witness or two. The document must also be notarized for it to be legally valid.
However, there are cases in which the Mortgage Contract includes a stipulation stating that the creditor’s consent and permission are necessary for the debtor to be able to sell the property in Santa Barbara CDO. For the assurance of the validity of the mortgage to be assumed, it is best to let the creditor know the agreement made between you and the seller.