Definitions for "Assumption of a mortgage"
When a property is encumbered by a mortgage, a buyer may decide to assume the existing mortgage instead of placing his own mortgage on the property.
The document that changes the liability of the payment from the buyer to the seller. The seller can still be held liable for payments if the buyer defaults, unless the buyer is qualified for the loan and seller is removed from the title. The Assumption Agreement is the written agreement that is filed to perform the transaction. The Assumption Fee is the lender charged fee to process the transaction.
Some loans are assumable. This means that on taking title to a property, the new owner can assume the existing loan on the property and become liable for this lien against the property.