Legal Question in Real Estate Law in Texas
transfer of loan
I have a question and would love to get your opinion. I
have a mortgage loan on my house that is fully assumable.
The company that lent the money was bought out by another
company when we found a buyer to assume the loan. the new
company said that that has changed and they do not
participate in assumable loans. I feel like this is not
what I agreed upon,that they are changing my contract up.
Then I talked to a lady at the company and she said oh it
is ok these people can assume the loan so we signed a form
called notice to surrender of secured property. In it it
states i hereby voluntarily surrender the secured property
. I relinquish all rights title, ownership, redemtion. Now
they are saying that if these people who assumed our loan
would default we are ultimitaly liable. Would you give me
some adivice on this or let me know steps i can take to
resolve this. I am in Texas
2 Answers from Attorneys
Re: transfer of loan
The loan company cannot unilaterally change the terms of your loan. If it was initially assumable it remains so. Sometimes in the contract (i.e. Deed of Trust or Note), the lender reserves the right to approve the person assuming the loan, which can be a significant restriction. Assumption generally will not relieve you of liability, unless upon the assumption you obtain a release from the lender. Larry Maun 713.266.2560
Re: transfer of loan
If the mortgage note states that the loan is assumable, then I don't see why the loan is not assumable. However, unless you obtained a release from the mortgage company prior to transfering the loan they are correct in stating that you remain secondarily liable on the note. In short what this means is that if the assuming parties default on the note you will be just as liable as they are on the note.
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