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NC Electives

How do Assumable Mortgages Work?


Description
Now that interest rates are 7% and higher, younger (less experienced) brokers need to understand how and when to employ sellers’ assumable mortgages. The purpose of this course is to help brokers identify mortgages that could be assumable or taken subject to or “wrapped” and discuss the legal issues and consequences for borrowers.

In addition, this course will review concepts such as mortgage contracts (mortgage deeds and deeds of trust); mortgage notes; due-on-sale and acceleration clauses; and novation.

It is the intent of this course to familiarize real estate licensees with these complex regulations and issues and to provide them with the information to respond appropriately to consumer questions about assumptions, subject tos, and wraparounds.

Course Number: 1961 Name of elective cou...: Assumables, Subject to, and Wraparound M...

Content
  • Section 1: INTRODUCTION
  • 1.1 Introduction About the Differences between On-demand and Traditional Courses
  • 1.2 Introduction to the Content of this Course
  • 1.3 Course Goals and Objectives
  • 1.4 Video: How to Navigate this Course
  • 1.4 Rules of Engagement
  • 1.5 Your instructor
  • Section 2: A little history
  • 2.1 Why assumable mortgages are making a comeback
  • 2.2 A Walk Down Memory Lane
  • xx Historical Average Interest Rates as of November 2023 and Sales Prices
  • 2.3 Review of "ancient history"
  • Section 3: THE MORTGAGE CONTRACT AND NOTE
  • 3.1 Overview: Mortgages Contracts
  • 3.2 Forms of Mortgages Contracts
  • 3.3 Different Types of Mortgages Contracts
  • 3.4 Title Theory versus Lien Theory States
  • 3.5 A Look at a Mortgage Deed of Trust
  • 3.6 Mortgage Notes
  • 3.7 A Look at a Note
  • 3.8 Other Loan Paperwork
  • 3.9 Review: mortgages and notes
  • Section 4: DUE-ON-SALE CLAUSES
  • 4.1 Introduction to Due-on-Sale Clauses
  • 4.2 Due-on-Sale Clauses
  • 4.3 The Effect of the Garn-St Germain Depository Institutions Act of 1982
  • 4.4 Review: Due on Sale Clauses
  • Section 5: ASSUMABLE MORTGAGES
  • 5.1 Are Assumptions Risky Business? They Can Be!
  • 5.2: The Risks of Assumptions
  • 5.3: Do All Mortgages have Due-on-Sale Clauses?
  • 5.4 VA loans
  • 5.4 More Details about Government-Sponsored Loans
  • 5.5 Sales Contracts and Assumptions
  • 5.5 Review: Assumptions
  • Section 6: ASSUMPTION ARITHMETIC
  • 6.1 Amortization Arithmetic
  • 6.2 Assumption Arithmetic
  • 6.3 Arithmetic Review #1
  • 6.4 Arthmetic Review #2
  • Section 7: SUBJECT TO THE MORTGAGE and wraparounds
  • 7.1 Overview: Subject to the Mortgage and Wraparounds
  • 7.2 Subject to the Mortgage
  • 7.3 Wraparound mortgages
  • 7.4 Review: Subject to the mortgage and wraparounds
  • Section 8: SELLER FINANCING
  • 8.1 Overview: Seller financing
  • 8.2 Seller Financing
  • Section 9 The Broker's Role
  • 9.1 The broker's role
  • 9.2 But don't listen to me
  • Section 10 Just a Few more things to do to get credit
  • 10.1 You're almost done!
  • 10.2 End-of-course survey
  • 10.3 Just hit the complete button
Completion rules
  • All units must be completed
  • Leads to a certificate with a duration: Forever
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