Pitfalls of Some Note Assumptions
While many people may not fully understand what note assumption is, even those that do may not be aware of every part of this process or some of the common pitfalls that can accompany note assumption. A note assumption involves person taking over the debt a person already has on a property when that party buys the property. As a result, the new owner, in theory, becomes responsible for the mortgage payments. Though this real estate option is favorable for many homeowners or potential buyers, it comes with common pitfalls that the experts of Easy Road Home want to make sure Austin property owners are aware of.
Avoid these Pitfalls
When you’re new to real estate, it’s only too easy to fall into common mistakes that others have found themselves subject to. However, knowing beforehand what some of the common mistakes that accompany note assumption are can prevent you from falling victim to these sometimes serious financial errors. The most common note assumption pitfalls to be on the watch for include:
- Failing to make a new buyer sign a payment agreement
- Failing to be fully aware of all components of your initial mortgage agreement
- Failing to acquire a substantial down payment from buyer
Avoiding mistakes like these can go a long way towards ensuring that you’re protected, legally and financially, when going through the note assumption process.
Contact a Real Estate Expert in Austin
It’s never a bad idea to further ensure your finances and legal rights are protected when going through a note assumption or other real estate transaction. Talk with our real estate and note assumption experts from Easy Road Home about how we can help you through this process and make sure you don’t make any critical errors. Contact our offices in Austin today by calling 888-405-2817.