Laswanteddr
First Time Poster
Cash: $ 0.25
Posts: 1
Joined: 19 Feb 2011
Location: Houston, Texas
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| Assumption V.S. New Loan |
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I am facing this complicated dilemma with a medical clinic and their reckless managing. Here goes, This clinic +property is being sold by owner, they have payed it off some time in '06, then decided to take out a 1.4 mil dollar loan for personal reasons against the property, the owner is proposing an assumption of the loan and property, but one problem the bank is not interested in that idea. The property is worth around $850k, now I'm not sure which route would be best to go by. The banker of this actual loan suggested that a partnership to be formed where the owner can have me on as part owner, then down the line I can reduce his ownership to bare minimum close to 1% this way I would avoid paying for a new loan, down payment and all the costs involved. An assumption this way bank is ok with, but it will be for whatever is left from the original note which is around $1.3 million. I just need a little guidance if I chose to apply for a new loan I'm thinking I would be financed for the $850,000 instead. Wouldn't this be a better route than trying to avoid initial costs and be stuck with a larger amount. Please help and if there are other ways of going about please enlighten me I greatly appreciated in advance .
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Sat Feb 19, 2011 11:11 am |
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smithhooper
New Member
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Joined: 06 Apr 2011
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They will assess your risk as a borrower.It helps if you have a large down payment to bring to the table.Banks love liquid funds in today's economy.Assumption is a way of taking over the debt obligation from the original borrower.
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Wed Apr 06, 2011 5:57 am |
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namratasnv
Preferred Member
Cash: $ 25.25
Posts: 126
Joined: 24 Jul 2009
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quote:
Originally posted by smithhooper
They will assess your risk as a borrower.It helps if you have a large down payment to bring to the table.Banks love liquid funds in today's economy.Assumption is a way of taking over the debt obligation from the original borrower.
There are several people who get confuse with these two things and mainly with the meaning and importance of Assumption.
http://www.connecticutwebuyhouses.com/
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Fri Apr 08, 2011 10:42 am |
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namratasnv
Preferred Member
Cash: $ 25.25
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Joined: 24 Jul 2009
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Getting new loan will be worth beneficial and thus helpful. It is upto us what details we are getting effectively when it is about applying for new loan.
http://www.connecticutwebuyhouses.com/
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Mon Apr 25, 2011 12:53 pm |
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kristiegarza
New Member
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The question is why pay $ 1.3 million for a property worth $ 850K? I never pay for a property of about 50%.
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Thu Apr 28, 2011 1:09 pm |
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harrywinston
Member
Cash: $ 2.00
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Joined: 24 May 2011
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Assumptions, my Bank has at least a long process and a headache. This is my point of view, an asset manager. These are usually 2-3 months to close. Owner's request because the entity manager, the assumption that the paperwork begins.
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Tue May 24, 2011 1:55 pm |
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