Submitted 270 days ago...
Assume loan payments
I have a rv which i am trying to sell, and I have people who want to assume the payments but not have a loan put in their name. It sounds fishy but im told people do this all the time. IVE been told as long as you get them to sign a written contract it is safe. Can someone advise me further?
Answer 1 / 2
Submitted 270 days ago...
If the loan is still in your name, YOU are still the one liable for it and no one else. If you want to be rid of this liability, the prospective buyers either need to pay cash in full for the RV so that you can payoff your loan or they need to obtain their own loan and utilize those proceeds to purchase the RV from you. You should read the terms of your existing loan to determine whether or not the note is legally assumable. Many are not. In order for an assumption to be legal whereas the lender recognizes the new buyer as the one responsible for the loan, the assumption must be processed and approved through that lender.
You could also draw up a repayment note of your own for the new buyers to sign, however understand that if they don't pay, you still have to make the payments on your RV loan. If leaving your existing RV loan in tact as your responsibility is not an option that you want, I would pursue a different buyer.
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