The ABCs of Jumping Loans – America’s Best Takeover Payment System


Description

In this lesson, I’ll walk you through the ABCs of Jumping Loans, a system I developed back in 1994 that’s now helped thousands of buyers and sellers nationwide. You’ll learn exactly what jumping a loan is, how it works, what needs to happen before closing, and how the actual closing process goes. This is America’s best legal takeover payment system, approved by both U.S. and Commonwealth Attorneys. I’ll show you how this helps sellers solve problems fast — often within 10 days — and how buyers can lock in great loans that are already in place. When you understand the steps, you’ll see why this system works so smoothly and how to protect both sides in the process.


Key Takeaways

  • Jumping a loan is not assuming a loan. The loan remains in the seller’s name, but the buyer takes over the payments.

  • Sellers benefit by solving their problem quickly, improving their credit, and choosing their closing date.

  • Buyers get a low fixed-rate loan and long-term financing that’s already in place — no bank applications required.

  • The “due-on-sale” clause is not a crime to violate; it simply allows the lender to call the loan due, though this rarely happens when you fly below the radar.

  • Both parties must complete two key forms before moving forward:

    1. Authorization to Release Information – allows the buyer to verify the loan.

    2. Disclosure Review – confirms that both sides understand the process and risks.

  • The seller must provide the loan account login (username and password) so the buyer can verify the loan details directly.

  • Once verified, the buyer handles the paperwork and closing is typically completed within 10 days.


Action Steps / Exercises

  1. Review the 4 Stages of a Jumping Loan: Write out the four basics — what it is, how it works, before closing, and the closing itself.

  2. Explain It to a Seller: Practice explaining to a mock seller what it means to “jump a loan” versus “assume a loan.”

  3. Form Familiarity: Download and review both required forms — the Authorization to Release Information and the Disclosure Review.

  4. Verification Drill: Using a sample property, outline what information you’d need from the seller to verify the loan (balance, rate, term, lender).

  5. Closing Scenario: Describe the roles of the buyer and seller in the closing process — who chooses the date, who pays what, and who prepares paperwork.