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Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 35368
Experience:  16 years real estate, Realtor. Landlord 26 years
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I am in ohio and I am wanting to purchase properties through

Customer Question

I am in ohio and I am wanting to purchase properties through subject to financing, taking over the payment on existing loans and transfering title to me. Does Ohio allow you to do this?
Submitted: 3 years ago.
Category: Real Estate Law
Expert:  Barrister replied 3 years ago.
Hello and welcome! My name is Barrister and I will try my level best to help with your situation or get you to someone who can.
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What you are referring to is just a loan assumption or land contract where you essentially step into the shoes of the original borrower and then honor their financial obligations by making payments either to them or to their lender.
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If you were wanting to get the loans transferred to your name, then you would have to get the bank to agree to let you personally assume the loans and transfer them to you. But if you are just entering into a private agreement where you are just making the payments on the loans while they remain in the original borrower's name, then you wouldn't need the bank's permission to do so.
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The owner of the property could just execute a quitclaim deed over to you to transfer ownership. However, most loans have a "due on transfer" clause that give the lender the option of calling the loan due if there is a transfer. But I have never seen a lender exercise this option as long as someone was making the payments. The bank generally only cares that someone is paying because the property still stands as collateral for the loan regardless of whose name it is in.
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Thanks.

Barrister

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If you need further help, just reply to me via the “REPLY” button and I will be happy to continue.

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I cannot enter into an attorney client relationship, this is a public forum, and all posts are available for public viewing. There is no duty of confidentiality that attaches to any posts. The information provided is not a substitute for a local attorney’s legal advice.

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Customer: replied 3 years ago.

Thanks for the information. So I shouldn't have a problem with an attorney in ohio to go over some contracts to make sure they are legal for Ohio?

Expert:  Barrister replied 3 years ago.
No, in 13 years of real estate law practice, I have never heard of a state that had outlawed this type of transaction or even placed limits on it. It is a very common type of property transaction especially where the buyer might not qualify for conventional financing through a bank.
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Thanks
Barrister