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BoomAndBustCycle says

This is already an option with all FHA loans

I did not know that. So if you buy someone's house and it has an FHA loan, you can just assume all the terms of the loan?

Seems like a flaw in the system, encouraging people to buy with FHA terms and quickly sell with a locked-in low interest rate sponsored by taxpayers.

BoomAndBustCycle says

This is already an option with all FHA loans

I did not know that. So if you buy someone's house and it has an FHA loan, you can just assume all the terms of the loan?

Seems like a flaw in the system, encouraging people to buy with FHA terms and quickly sell with a locked-in low interest rate sponsored by taxpayers.

From what i have read, yes, no one talks about it now since rates are so low and keep falling. But if rates rise in the future i am sure you will see real estate listings advertising assumable fha loan at 3.5%! Have ultra low monthly payments with this assumable loan home.

I wouldnt say its a quick sell scam.. More of a hedge against future higher rates that gives u the advantage of getting more money for your home high rate / low home price future scenario.

BoomAndBustCycle says

This is already an option with all FHA loans, so I think it will only be natural to extend it to private loans via a retroactive law in the future.

That assumes the buyer qualifies. What are the chances the standards tighten up?

Yeah, I know :(

I know people who did this in the early 80s when rates were sky high. I also agree we will see it again when rates increase.

HHB says

I know people who did this in the early 80s when rates were sky high. I also agree we will see it again when rates increase.

I also saw LA real estate in the 80s and this is not exactly what happened.

New Renter says

BoomAndBustCycle says

This is already an option with all FHA loans, so I think it will only be natural to extend it to private loans via a retroactive law in the future.

That assumes the buyer qualifies. What are the chances the standards tighten up?

Yeah, I know :(

AND that is where it all falls apart because so few qualify for ANYTHING today and that is why housing will continue to collapse.

THERE ARE NO QUALIFIED BUYERS. And the ones who are qualified have their heads on straight.

BoomAndBustCycle says

This is already an option with all FHA loans

I did not know that. So if you buy someone's house and it has an FHA loan, you can just assume all the terms of the loan?

Seems like a flaw in the system, encouraging people to buy with FHA terms and quickly sell with a locked-in low interest rate sponsored by taxpayers.

There are specific qualifications behind taking over an FHA loan. First and foremost (which wipes out the majority of the public) is per FHA "Assumption of an FHA loan is a process where the responsibility of the mortgage is acquired by another person through “either Simple or Creditworthiness process.” according to FHA.gov."

That is only one stipulation to taking over an FHA loan. It isn't just walk in the door like a Sec 8 recipient and demand your rights.

It is 2012 and the game is entirely different. There are no more easy loans. Therefore the prices have no where to go but down and down and down. If one takes prices back to the mid-1970s before all this easy lending shite.

This is just reality. There is nothing they can do to prop up a falling real estate object that is falling as a direct result of the force of fraud and greed.

bgamall4 says

If interest rates rise, house prices will decline.

Slight correction

When interest rates rise (AND THEY WILL) house prices will continue to decline EVEN MORE.