Q: Loan assumption
My father is a cosigner and wants to be removed from my FHA loan. I was not employed at the time of purchase but am now. I checked my closing disclosure and it states that my loan is assumable. Do I need an attorney to do this? If possible, how do I get this process started?
A: Unless the new lender allows it, the cosigner would still be liable if someone else assumed the Note. Check with various lenders for their policies. You might find one that allows his removal, but it is doubtful. Only a refinance will probably result.
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