QUESTION
Can I assume someone's mortgage if they have filled bankruptcy?
Asked on Oct 21st, 2016 on Bankruptcy - New York
7 ANSWERS
Assuming a mortgage will have nothing to do with the seller?s prior bankruptcy. However, whether the seller is eligible to transfer the title to the property to you is a much more crucial issue that you will need to investigate.
Answered on Nov 18th, 2016 at 4:55 AM
Meet with an experienced BK & RE lawyer. Pay them for a couple hours of their time to review the Deed of Trust and the BK file. The answer to your questions depends on a lot of things. Now is not the time to skimp. Good luck!
Answered on Nov 18th, 2016 at 4:55 AM
It is unlikely that you could assume any mortgage, regardless of the circumstances, but you would have to contact the mortgage holder to be sure. The county recorder's office should have a record of the mortgage.
Answered on Nov 18th, 2016 at 4:54 AM
Bankruptcy Attorney serving Madison, WI
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Richard B. Jacobson & Associates, LLC
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That will depend on the precise language of the mortgage and mortgage note. Some of them preclude assumption-but in general they can permit an assumption if they specifically agree. So you must check those documents with care. Good Luck.
Answered on Nov 18th, 2016 at 4:54 AM
1 Award
It is completely up to the mortgage lender. It is very unlikely that a mortgage lender will allow you to assume a mortgage.
Answered on Nov 18th, 2016 at 4:54 AM
Commercial & Bankruptcy Law Attorney serving Powell, OH
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Ronald K. Nims
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Very few mortgages today can be assumed. Banks haven't written assumable mortgages since the 1960s. If the mortgage is assumable, you could assume it, regardless if the original debtor filed bankruptcy.
Answered on Nov 18th, 2016 at 4:54 AM
That will have an impact on the bankruptcy especially if they are on a chapter 13 and are paying arrears in the plan.
Answered on Nov 16th, 2016 at 8:44 AM