I am interested in selling my boat and have the buyer assume my current loan. Anybody ever done this? If so, how does that work? I do know that the loan has to be assumable to do so.... Thanks for any info...
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I am interested in selling my boat and have the buyer assume my current loan. Anybody ever done this? If so, how does that work? I do know that the loan has to be assumable to do so.... Thanks for any info...
You might want to google that!
The buyer has to be approved by your lending institution to assume your loan....he also has to sign papers with them.
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and also MAKE SURE it doesn't leave you as a co-signer if it does and they don't pay the bank will come back on you.
Best thing to do is just tell the buyer to get his own loan.
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I must agree with wannabe and G , buyer get his own loan !!!! If he cannot that throw up red flags everywhere.
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I would be surprised if any lenders would allow a "boat loan" to be assumed.
I'm with the rest who advise against such. I have been in retail for the last 35 years before retiring a year ago. I believe assumable loans only exist in mortgages of real property and not on installment type loans, so I doubt very seriously that your lending institution would go along with any sort of an assumption. A new loan in the buyer's name could proceed under the circumstances that (1) the amount owed on the loan was less than 80% of the loan value (or whatever) guidelines of a bank, credit union or finance company; (2) that the buyer had credit that surpassed the minimum approval guidelines of that (particular) lending source; and (3) that the buyer could come up with any amount between the stated loan value and the amount owed on your contract if (in fact) there is a difference (over the loan value).