How to Transfer a Mortgage to a New Owner
- 1). Contact the mortgage lender. The current owner should call the mortgage lender to say he wants to transfer the mortgage to the buyer. The current owner should ask if the mortgage is assumable, which means the transfer can proceed. Otherwise, the transaction must proceed in the usual way: the buyer would obtain a separate mortgage.
- 2). Have the buyer complete the mortgage company's application and a consent form to allow a credit check. Even if the mortgage is assumable, the mortgage company will want to make sure that the buyer is a good credit risk, which involves a formal application and a credit check.
- 3). Hire a real estate lawyer or title company. After the buyer receives approval from the mortgage company, the lender will probably want to work with a real estate lawyer or title company to transfer the mortgage responsibility and deed of the property simultaneously. The seller should hire a real estate lawyer or title company, or contact the person who handled the original mortgage transaction to complete the transfer paperwork.
- 4). Attend the closing to transfer ownership and mortgage responsibility. The buyer and seller need to attend the closing in order to sign all of the legal documents that transfers both the mortgage and ownership of the property to the new owner.
