Buying, selling and operating apartments in Portland

Loans – Assumability and Recourse | 17 April 2010

If your loan is assumable this makes marketing your property easier.From a buyer’s perspective, it is lower cost and easier to qualify to assume a loan than generating a new loan. However, there is a fee for assuming a loan to the buyer.

Recourse – Financing institutions may require you include other properties or assets as collateral against a loan. If your property is cross-collateralized, in order to get a release to sell, a bank may require you to pay off a loan on the other properties.

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