An assumable mortgage is one which lets a buyer take over the existing loan of a seller. Assumable mortgages require the lender's approval. The person who assumes a mortgage takes the same interest rate and monthly payment schedule as the original loan, which can result in big savings if the interest rate on the existing mortgage is lower than the current rate on new loans. However, the lender can change the loans terms. The person assuming a mortgage still needs to qualify for the loan and pay closing fees, including the costs of the appraisal and title insurance.
The lender also holds the seller liable for the loan. For example, if the person assuming the mortgage defaults on payments and the lender forecloses, but the property sells for less than the loan's balance, the lender can sue the seller for the difference.
Phoenix, Arizona General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a legal document used in real estate transactions in Phoenix, Arizona. This agreement is designed to facilitate the buying and selling of residential properties while assuming an existing mortgage or deed of trust. The Phoenix, Arizona General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust outlines the terms and conditions of the sale, including the purchase price, closing date, and any contingencies. It also specifies the existing mortgage or deed of trust that the buyer will assume responsibility for. When it comes to different types of Phoenix, Arizona General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust, there can be variations based on specific circumstances or parties involved. These may include: 1. Single-family residential property agreement: This type of agreement is used for the sale of a single-family home, where the buyer assumes the existing mortgage or deed of trust associated with the property. 2. Multi-family residential property agreement: This agreement is utilized when a buyer purchases a multi-family property (such as a duplex or apartment building) in Phoenix. The buyer agrees to assume the existing mortgage or deed of trust on the property. 3. Condominium or townhouse agreement: This agreement is specific to the sale of a condominium or townhouse in Phoenix, where the buyer takes on the existing mortgage or deed of trust. 4. Vacant land agreement: In some cases, this type of agreement may be used when a buyer purchases vacant land with an existing mortgage or deed of trust. The buyer assumes the responsibility of the mortgage or deed of trust upon purchasing the land. It is crucial for both the buyer and seller to understand the terms and conditions outlined in the Phoenix, Arizona General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust. Seeking legal advice is recommended to ensure compliance with local regulations and to protect the interests of all parties involved in the transaction.Phoenix, Arizona General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a legal document used in real estate transactions in Phoenix, Arizona. This agreement is designed to facilitate the buying and selling of residential properties while assuming an existing mortgage or deed of trust. The Phoenix, Arizona General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust outlines the terms and conditions of the sale, including the purchase price, closing date, and any contingencies. It also specifies the existing mortgage or deed of trust that the buyer will assume responsibility for. When it comes to different types of Phoenix, Arizona General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust, there can be variations based on specific circumstances or parties involved. These may include: 1. Single-family residential property agreement: This type of agreement is used for the sale of a single-family home, where the buyer assumes the existing mortgage or deed of trust associated with the property. 2. Multi-family residential property agreement: This agreement is utilized when a buyer purchases a multi-family property (such as a duplex or apartment building) in Phoenix. The buyer agrees to assume the existing mortgage or deed of trust on the property. 3. Condominium or townhouse agreement: This agreement is specific to the sale of a condominium or townhouse in Phoenix, where the buyer takes on the existing mortgage or deed of trust. 4. Vacant land agreement: In some cases, this type of agreement may be used when a buyer purchases vacant land with an existing mortgage or deed of trust. The buyer assumes the responsibility of the mortgage or deed of trust upon purchasing the land. It is crucial for both the buyer and seller to understand the terms and conditions outlined in the Phoenix, Arizona General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust. Seeking legal advice is recommended to ensure compliance with local regulations and to protect the interests of all parties involved in the transaction.