If you need to quickly exit a current mortgage, you may not have time to put your home on the market and wait for it to sell. However, if you transfer your debt to another individual, that person can take over your mortgage payments, giving you the freedom to move in or buy another house elsewhere. The person you are transferring the mortgage loan has the benefit of being able to get your interest rate. If your home has warranty, you can even receive a transfer benefit.

  1. Check your original loan papers to see if there is a sunset clause for sale. If your mortgage loan contract contains a clause of this nature and try to transfer ownership of the property without notifying the lender, this may demand immediate repayment of the loan.
  2. Contact the lender and explain that you want to transfer your mortgage to another person. Each mortgage lender transfers handled differently, but it is likely that yours will mail a packet of information along with papers that need signing.
  3. Ask the new owner to call your lender and ask you a package of assumption. It contains information and instructions for the person who wants to take responsibility for your mortgage loan.
  4. Full and sends back the papers from your mortgage company. The new owner must do the same.
  5. Negotiates with the buyer to pay a portion of the security of your home. If you do not have collateral, that is not a problem. However, if your home is worth more than you owe your lender, a common and reasonable is to ask the seller to pay you a portion of your collateral in exchange for the transfer.
  6. Wait for the company to process the transfer request and perform a credit check on the new owner. The person who receives your mortgage loan must meet credit requirements and income from your lender.
  7. Visit a lawyer and prepares a document disclaimer. This document frees you from the responsibility to repay the mortgage after the transfer. Therefore, in case of default of mortgage payment by the buyer, the lender cannot ask you for such payment.
  8. Pay the transfer fee the lender. The transfer fee may vary depending on the lender. FHA loans, for example, have a transfer fee of US $ 500. You or the person assuming the mortgage must pay the fee, or they can split the cost between the two.
  9. Signing the writings of your house to belong to the new owner.

Tips & Warnings

  • Mortgages backed by the government, such as FHA and VA mortgages, often can be transferred.
  • Even if your credit is transferable mortgage, your lender may refuse to allow you to transfer the debt if you are behind on your mortgage payments.