What does assume the mortgage mean? Are you looking for a Mortgage Assumption Agreement? Download this legal Mortgage Assumption Agreement template now!
When a mortgage assumption agreement is prepared, it means an assumable mortgage (which is a kind of financing arrangement) will be transferred from the existing mortgage owner to a new buyer. In this situation, the previous owner's remaining debt will go over to the new buyer, which in that case avoids having to obtain their own mortgage. A Mortgage Assumption Agreement is an agreement or contract between a Buyer of Real Estate and the Seller in which the Buyer gets to take over the Mortgage Payments and Obligations of an already existing Mortgage. Therefore, a mortgage loan assumption will be completed only if a Mortgagee (or Lender) accepts the transfer of assumption mortgage debt. It's a valuable template if you are in the situation when you want to transfer the suits, debts, covenants, promises, contracts, controversies, agreements, claims and demands, etc. to the Releasee, Warnings for Assumption of Mortgage:
- Please note that the original mortgagee can be liable for repaying the loan, in the situation that the new owner fails to repay the loan.
- Assuming a mortgage can be risky, and we recommend consulting a lawyer or legal professional for more legal advice.
- Make sure to keep the original lender in the loop with a wrap-around mortgage. This will be necessary to be sure that you are able to get the title.
This sample Mortgage Assumption (6 pages) contains the necessary information to set up the Assumption of the Mortgage process. This Agreement template will structures communication between the Mortgagee and the Borrower in a professional way and covers the most important subjects, such as:
- DEFINITION MORTGAGEE OR LENDER
- DEFINITION BORROWER
- SEVERAL WHEREAS ARTICLES
- CONSIDERATION OF THE PREMISES
- CONSENT TO CONVEYANCE
- WARRANTIES AND REPRESENTATIONS
- NO NOVATION
- ASSUMPTION FEE
- PARAGRAPH HEADINGS
- GOVERNING LAW
- TIME OF THE ESSENCE
- ATTORNEYS' FEES
- BINDING EFFECT
How does an assumption of a mortgage work?
When you assume a mortgage, you're taking over a mortgage payment from the original mortgage owner while keeping the current terms of that payment intact. Once the assumption is complete, you take over the payments on a monthly basis, and the person you assume the loan from is released from further liability.
This professional Mortgage Assumption can be signed between the Mortgagee and Borrower. The 3 step process virtually guarantees you can finish and print your legal document in minutes! Completing your legal Mortgage Assumption Agreement was never simpler!
Download this Mortgage Assumption Agreement template and after downloading you will be able to change and customize every detail and appearance. Save yourself time, efforts and probably reduce some of the lawyer-fees! However, we still recommend you to consider consulting a local law firm in case of doubt to support you in this matter.
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