From the lenders perspective – they would be lending to an unqualified borrower. If you don’t meet their criteria, then why would they loan to you. Especially since they already loaned to an apparently unqualified buyer who is now not making payments and in threat of foreclosure.
Why would they judge a borrower different in this scenario than if they were purchase borrower not assuming the loan.
Also – why would the bank make an exception on the loan assumption – which would set a precedence… Pretty risky.
I don’t normally side with banks. But in this case, I do.
