Somebody called me yesterday after watching my video about the law changing in California in 2027, the one that will force lenders to make conventional loans assumable in certain circumstances. She asked, "What does assumption even mean?" Fair question. I never said what it was. An assumption is when somebody else takes over a loan and assumes responsibility for making the payments. They are now obligated on the mortgage. Say I have a mortgage and I sell the property to you. You take on all responsibility and the loan is now on your credit report. You keep making payments for the remaining term that's left: the same rate, the same payment, everything remains the same. It's just not reporting to my credit anymore. Every loan has something called a due on sale clause. If I sell my property to you, you have to replace the debt on that property, because ownership has transferred, unless my current lender allows you to assume the terms of the existing mortgage. That happens with FHA and VA, but not with conventional. Hit us up. We're here to help you any time at True Blue Lending. Jesse Gonzalez | True Blue Lending CorporationNMLS #278103 | Company NMLS #2380218Phone: 707-583-3666Web: truebluelending.net
