What do you need as an investor, or seller, for that matter, to assume a loan? Below are the requirements:
-An opinion from an independent source stating the value of the property subject to the mortgage loan being made or sold. The opinion must state the value of the property, as it exists on the date of the opinion.
-A copy of the preliminary title report that states the condition of title and discloses any encumbrances, assessments, and liens of record on the property securing the mortgage loan being made or sold
A disclosure statement which includes the following information:
-The name and address of the fee owner of the property securing the mortgage loan being made or sold
-Information relative to the ability of the borrower to meet the obligations of the mortgage loan
-A legal description or address of the property securing the mortgage loan being made or sold
-The existence of any improvements on the property or any utilities on or adjacent to the property which will serve the property
-The terms and conditions of all liens on the property securing the mortgage loan being made or sold
-A statement as to whether the mortgage broker is acting as principal or agent in the transaction any additional information prescribed by the Superintendent
(Source: Mortgage Educators and Compliance 2022)
