Step 1: Confirm the Existing Loan
The seller should obtain accurate information about:
- FHA status
- Servicer
- Balance
- Interest rate
- Payment
- Mortgage insurance
Step 2: Buyer Applies With the Servicer
The existing servicer controls the assumption review. The buyer must qualify through that process.
Step 3: Equity Gap Is Solved
The buyer must determine how to fund the difference between the purchase price and the assumed balance. This is a negotiated part of the deal.
Step 4: Title Work Continues
Title still needs to address:
- Ownership
- Other liens
- HOA
- Taxes
- Judgments
- Recorded matters
Assuming one mortgage does not erase everything else.
Step 5: Closing
The closing professionals coordinate transfer of ownership and the permitted assumption documentation.
Seller Release
A seller should specifically confirm the servicer's release-of-liability process rather than assuming the transfer automatically removes all responsibility.
How Lisa Helps
Lisa coordinates the purchase agreement, timeline, seller and buyer communication, equity-gap negotiations, and real estate contingencies.
The servicer handles assumption approval.
