When a buyer takes over, or "assumes" the sellers mortgage.
Assumption is when there is already a loan taken out for vehicle and the buyer agrees with the seller that they will take over the payments.
Allows a buyer to assume responsibility for an existing loan rather than obtaining a new loan
(of mortgage) - The buyer assuming responsibility for the seller's existing mortgage at the interest rate and terms laid out in the original mortgage contract.
A method of selling real estate where the buyer takes responsibility for repaying the mortgage from the seller. Select the state in which you wish to find a Real Estate Agent to buy, sell, buy and sell, a home today! Alabama / Alaska / Arizona / Arkansas / California / Colorado / Connecticut / Delaware Florida / Georgia / Hawaii / Idaho / Illinois / Indiana / Iowa / Kansas / Kentucky / Louisiana Maine / Maryland / Massachusetts / Michigan / Minnesota / Mississippi Missouri / Montana / Nebraska / Nevada / New Hampshire / New Jersey / New Mexico New York / North Carolina / North Dakota / Ohio / Oklahoma / Oregon / Pennsylvania Rhode Island / South Carolina / South Dakota / Tennessee / Texas / Utah / Vermont / Virginia Washington / Washington DC / West Virginia / Wisconsin / Wyoming Copyright © 2005-2006 RealEstateLocalSearch.com, All Rights Reserved
Agreement by a buyer to assume the liability under an existing note secured by a mortgage or deed of trust. The lender usually must approve the new debtor in order to release the existing debtor (usually the seller) from liability.
The taking over of a mortgage and related obligations. The original borrower sometimes remains liable on the mortgage note.
An agreement between seller and buyer where the buyer will take over the payments on an existing mortgage from the seller. Assuming a loan in this manner usually saves the buyer money since this is an existing loan.
The buyer assumes the existing debt obligation and primary personal liability to repay the loan.
Taking over an existing debt. Some mortgages are assumable and may provide greater resale value to your home. Both FHA and VA loans are fully assumable. Some adjustable rate mortgages may be partially assumable. alloon Payment The final payment of a mortgage which is larger than the regular payment; it usually pays off the debt.
Taking over responsibility for payments on a mortgage and meeting any of the other requirements. Typically, a buyer assumes a mortgage from the seller.
A clause in a deed of trust that requires the new owner of the property to become personally liable to the lender for the loan's repayment. The new owner must typically submit an application to the lender and receive approval prior to completing the transaction.
An agreement between buyer and seller in which the buyer assumes responsibility for the seller's existing mortgage. This agreement usually saves the buyer money because closing costs and the current interest rate, possibly higher, do not apply.
Assuming or taking over the existing mortgage on the property being purchased. Depending on the terms within the mortgage document this can be done either with or without a qualifying process.
The taking over of a debt by another party.
Process whereby a buyer of real property agrees to assume responsibility for payments on an existing mortgage on the property.
An act that occurs when the buyer of a property assumes the seller's debt or obligation without obtaining new financing. This must be approved by the lender and be permitted under the terms of the note that the seller executed with the lender.
The procedure whereby the transferee becomes liable for all or part of the debt of the transferor. An assumption may be at the same rates and terms or at new rates and terms, depending on the circumstances. (last updated 03/19/2004)
Assuming the terms and conditions of an existing AHFC loan without obtaining new financing.
The process of taking over the existing mortgage and assuming liability for the payments when purchasing a property. If the purchaser defaults, both buyer and seller may be responsible for repaying the debt.
The transfer of a seller's existing mortgage to a buyer.
The term applied when a buyer assumes the sellers mortgage.
of Mortgage: A buyer's agreement to assume the liability under an existing note that is secured by a mortgage or deed of trust. The lender must approve the buyer in order to release the original borrower (usually the seller) from liability.
To take over one's obligation under an existing agreement. Usually done for a fee.
The transfer of a mortgage from an existing homeowner to a buyer.
A transaction involving a buyer and seller (borrower), whereby the buyer purchases the property and assumes the payments of the borrower.
purchasing a property by agreeing to assume an existing mortgage, and agreeing to be personally liable for the terms and conditions of the mortgage, including the payments. Not all existing mortgages can be assumed.
Assumable mortgages allow you to transfer your mortgage to the new owner of your home, if you should sell your home (provided the new owner meets the lender's credit standards.)
An agreement made between a buyer and seller where the buyer agrees to "assume" responsibility for making the payments on the seller's "assumable" mortgage.
When the buyer agrees to take over the obligations of the seller. If the buyer defaults, both the buyer and seller are responsible.
A method of selling real estate wherein the property purchaser agrees to take over the primary liability for payment of an existing mortgage.
The buyer's acceptance of liability for the seller's existing home loan whereby the buyer takes over the payments on the existing property mortgage.
An agreement where the purchaser agrees to make the payments on an existing mortgage on the property. The original borrower remains liable unless he is specifically released.
A transaction whereby a buyer takes over responsiblity for an existing loan. In most cases a buyer will have to qualify for the loan as if it was a new loan.
A means by which the title/mortgage may be transferred to another party with or without release of liability on the note. return top
The taking over of a seller's mortgage by the purchaser of a parcel of real estate.
The act of taking over the previous borrower's obligation of a mortgage note. Assumptions may be advantageous if the terms of the mortgage are advantageous and they are not changed by the lender when the mortgage is assumed.
A buyer "assumes" or takes over the seller's mortgage.
A transaction allowing the buyer to assume responsibility for an existing loan instead of getting a new loan. Balloon -- A loan that has a series of monthly payments with the remaining balance due in a large lump sum payment at the end.
The act of taking over an obligation or liability of a mortgage note from the previous borrower.
agreement between buyer and seller, where the buyer takes over (assumes) the payments on an existing mortgage from the seller. Assuming a loan usually saves the buyer money because an existing mortgage debt does not require closing costs or new, potentially higher, market-rate interest charges.
The act of a Buyer taking title to a property and assuming liability for paying an existing loan secured by a existing mortgage or deed of trust against the property.
An agreement between a buyer and seller whereby the buyer takes over the payments on an existing mortgage from the seller. Assuming a loan can usually save the buyer money because this is an existing mortgage debt.
The transfer of the seller's existing mortgage to the buyer.
Taking on a responsibility, such as where a buyer of real property agrees to assume responsibility for payments on an existing mortgage.
An agreement by one party to pay an obligation previously owned by another. For example, the assumption of an existing Trust Deed by a new owner may occur when property is sold.
Allows a buyer to assume responsibility for an existing loan instead of getting a new loan. The assumption may have to be approved by the lender.
when a buyer takes over a seller's mortgage upon purchasing a home.
The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. Assuming a loan can usually save the buyer money since this is an existing mortgage debt, unlike a new mortgage where closing cost and new, probably higher, market-rate interest charges will apply.
The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. Assuming an existing mortgage debt can usually save the buyer money compared to a new mortgage. That's because a new mortgage includes closing cost and new (probably higher) market rate interest charges.
An agreement between a buyer and a seller, requiring lender approval, where the buyer takes over the payments for a mortgage and accepts the liability. Assuming a loan can be advantageous for a buyer because there are no closing costs and the loan's interest rate may be lower than current market rates. Depending on what is in the mortgage or deed of trust, the lender may raise the interest rate, require the buyer to qualify for the mortgage, or not permit the buyer to assume the loan at all. Go to Top
Taking over a loan and becoming personally liable for the repayment.
When a buyer takes over the loan payments and obligations of the seller. If the buyer defaults, however, both the buyer and seller are responsible for the debt.
The term applied when a buyer assumes the sellerâ€(tm)s mortgage.
When the buyer of a piece of property agrees to take over the existing mortgage.
An agreement that a buyer will assume liability under an existing note secured by a mortgage or deed of trust. The lender must approve the buyer.
A legal document signed by a homebuyer that requires the buyer to assume responsibility for the obligations of a mortgage by the builder or original owner.
The process of assuming a mortgage.
The act of taking over a mortgage obligation incurred by the original borrower. The new owner assumes the mortgage obligations and the title to the property.
In any market, refers to the takeover of a seller's mortgage loan by the buyer of the home. The buyer "assumes" responsibility for making the mortgage payments.
New owner assumes the responsibility for repaying an existing mortgage. Both FHA and VA loans are fully assumable. Some adjustable rate mortgages may be partially assumable, but the new owners may be required to re-qualify for the loan.
An agreement between buyer and seller, whereby the buyer takes over the sellerâ€(tm)s payments on an existing mortgage. This can sometimes save buyers money, because a new mortgage may be subject to a closing cost and new, probably higher, market-rate interest rates.
A transaction allowing the buyer to take on the responsibilities of an existing loan without getting a new loan.
A home buyer's agreement to take on the primary liability for paying an existing mortgage from a home seller.
The act of taking on the debts, obligations and benefits of a contracting party under a lease agreement. Credit must approve the assumption of an existing transaction. The party whose debts, obligations and benefits under the lease are being assumed may be liable on the transaction if the assuming party defaults under the lease.
A mortgage that allows a new owner to take over payments. The original borrower remains liable on the mortgage note.
An agreement between a propertyâ€(tm)s buyer and seller in which a buyer “assumes†the sellerâ€(tm)s existing mortgage. The buyer takes over the sellerâ€(tm)s payments as is.
An agreement to undertake a debt or obligation contracted by another.
In the case of a mortgage, the subsequent taking over of the terms, conditions, and responsibility for payment of an existing mortgage by a new borrower. Usually as a result of the transfer of real estate.
A transaction allowing the buyer of a home to assume responsibility for an existing loan on the home instead of getting a new loan.
in mortgages, this occurs when a buyer invest the cash to take over the seller's original loan, make monthly payments and assume responsibility for the debt. ( not very common today)
Buyer assuming responsibility of seller's existing mortgage at the interest rate and terms as laid out in the original mortgage documents.
The act of conveying real property; taking title to a property with the Buyer assuming liability for paying an existing note secured by a deed of trust against the property.
Agreement between buyer and lender where the buyer takes over the payments on an existing mortgage. ________________________________________
Acceptance of personal liability for another's debt or obligation. In the case of the sale of real estate, the buyer personally accepts and promises to pay off the existing deed of trust. Back to the Top
Buying property and assuming the responsibility of the exiting mortgage.
The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. Rare for conventional loans, it is much more common for government loans.
The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. Assuming the loan can usually save the buyer money since this is an existing mortgage debt, unlike a new mortgage with closing costs and possibly higher interest rates.
Taking over another person's financial obligation; taking title to a property with the Buyer assuming liability for paying an existing note secured by a deed of trust against the property.
The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. Assuming a loan can usually save the buyer money since this is an existing mortgage debt. (Return to the top of the page.)
The buyer's acceptance of liability for the seller's existing home loan. See Assumable Mortgage.
A homebuyer's agreement to take on the primary responsibility for paying an existing mortgage from a home seller.
A method of selling real estate where the buyer of the property agrees to become responsible for the repayment of an existing loan on the property.
The taking over by one party of an obligation which was originally incurred by another, as in the assumption of an existing mortgage by the new owner when a property is sold.
To take over one’s obligation under an existing agreement. (Note: This can be done with varying degrees of release - see assignment, novation and subject-to).
An agreement between a seller and buyer where the buyer takes over the loan payments from the seller.
an agreement between the seller and buyer whereby the buyer "steps into the shoes" of the seller and assumes or takes over an existing mortgage on the property. If the lender is willing, this frequently saves the buyer money since this is an existing mortgage and there should be reduced closing costs. Note that the lender determines if it will allow an assumption of the debt.
The agreement between buyer and seller where the buyer takes over the payments on an existing mortgage from the seller. This must be approved by the lender and be allowed by the note, which was originally signed by the seller.
The process whereby a purchaser of a property is substituted for the original borrower upon approval of the lender. The original mortgagor is to be released from further liability in the assumption. Please make note: Assumption should not be confused with purchasing a property "subject to" the current mortgage where the new buyer makes the payments but the original mortgagor remains personally liable if the purchaser fails to make the monthly payments. The Garn - St.Germain bill in the mid 1980's generally gave lenders the right to require payoff of the loan upon sale of the property. In my view, it is a dangerous practice to purchase a property without telling the lender, "hoping that they will not notice." FHA and VA loans are virtually the only fixed rate loans which are assumable. ARM's, on the other hand, are always presumed to be "at market rate" and are almost universally assumable at the discretion of the lender.
An agreement permitting the buyer to assume responsibility for a mortgage owed by the seller.
When the seller's outstanding mortgage is passed over to the buyer of the property.
Agreement between buyer and seller for the buyer to take over the payments on an existing mortgage.
An agreement between a seller and a purchaser to transfer the liability for payments to the purchaser. The seller may remain secondarily liable for payments under an assumption. Many lenders have discontinued the use of this type of contract.
An agreement between a buyer and a seller which may require lender approval, where the buyer takes over the payments for a mortgage and accepts the liability. Assuming a loan can be advantageous for a buyer because there are no closing costs and the loan's interest rate may be lower than current market rates. Depending on the terms of the mortgage or deed of trust, the lender may raise the interest rate or require the buyer to qualify for the mortgage. automated valuation model A computer model used to estimate the current market value of a home using property records and various analytic methodologies such as comparable sales prices, home characteristics and historical home price appreciation.
The agreement to legally undertake performance of another party's obligation
Takeover of a loan by any qualified buyer Takeover of a loan by any qualified buyer.
A mortgage obligation that can be taken over by the buyer when a home is sold. The new owner assumes the mortgage obligations and assumes title to the property. back
A buyer takes on the seller's loan payments. This means that if the buyer defaults on the mortgage, both buyer and seller are held responsible. Banks sometimes charge a loan assumption fee for those assuming an existing mortgage.
