Personal finance expert Dave Ramsey warns: The popular mortgage assumption "trick" on TikTok is a scam that will "leave you with nothing."
Dave Ramsey, a renowned personal finance expert, stated that the "trick" circulating on TikTok, which aims to allow homebuyers to secretly take over someone else's low-interest mortgage without informing the lender, is fraudulent. He warned that this practice would lead to foreclosure and financial loss. He pointed out that legitimate mortgage assumptions (such as government-backed FHA, VA, and USDA loans) require specific conditions to be met, and interest rates may be adjusted, which is distinctly different from the secret transfer methods promoted on social media. Ramsey emphasized that most conventional mortgages include a "due-on-sale" clause, allowing lenders to demand immediate repayment of the entire loan once they discover a transfer of ownership, thus exposing homebuyers to significant risk.
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