In order for a borrower or all parties on the loan to be removed from liability, a formal assumption is required. A formal assumption would apply for the following situations: divorce, death of sole borrower (owner), and a transfer or sale of the property.

Similar requirements would apply to add an individual to the loan.
Please keep in mind that to assume CalHFA loans the new borrowers must meet CalHFA’s loan requirements.

CalHFA subordinate loans cannot be assumed.