Legal Question in Real Estate Law in Virginia

Real state

My younger sister Paola 22 yrs old bought a house for my other Sister Adela 29 yrs old and her husband Christian, the loan is on Paola's name, Adela and Christian are not paying on time, I found a form in legal forms in the internet that calls ''Mortgage assumption agreement-original holder released''. I need to know if that form will help Paola to be free of the debt and getting bad credit? does this document need to be filed in court?, does the banc needs to authorize?, please tell me how this process has to be done, Paola would like to put some responsability on Adela and Christian, she is so worry and afraid that she will not be able to buy anything in the future, can you please advise what else can she do. thank you


Asked on 5/30/07, 12:37 pm

1 Answer from Attorneys
Michael Hendrickson Law Office Michael E. Hendrickson

Re: Real state

Yes, the "banc", meaning the mortgage lender, would indeed need to authorize such an assumption agreement and you can be 100% certain that they will never agree to it for the reasons already suggested in your question, namely, that, unfortunately, sister Adela and her hubby would not appear to be good credit risks, a factoid which sister Paola should've understood from the beginning. Now, she's stuck and when the inevitable foreclosure occurs on the property, it will be her credit that "goes down the tubes", so to speak, rather than that of sister Adela and her hubby.

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Answered on 5/30/07, 4:18 pm


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