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.
Alaska General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a legal document commonly used in real estate transactions to outline the terms and conditions of the sale of residential properties in Alaska, where the buyer assumes the existing mortgage or deed of trust on the property. This agreement serves as a legal contract that protects the rights and interests of both the buyer and the seller involved in the transaction. Keywords: 1. Alaska: This refers to the US state where the agreement is being used. Alaska has its own specific laws and regulations related to real estate transactions that may differ from other states. 2. General Form: This highlights that the agreement follows a standardized format, providing a framework that can be easily customized to fit the specific details of the transaction. 3. Agreement of Sale: This signifies that the document is establishing a contract between the buyer and the seller for the sale of a residential property. 4. Residential Property: This specifies that the agreement pertains to the sale of a property designated for residential purposes, such as a house, condominium, or townhouse. 5. Assumption of Existing Mortgage: This clause indicates that the buyer takes on the responsibility of the seller's current mortgage loan, including the terms and obligations associated with it. 6. Deed of Trust: This term signifies an agreement between the buyer, seller, and lender, where the lender holds the deed to the property as security until the mortgage loan is paid in full. 7. Different Types: While the Alaska General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is typically applicable to various residential property sales, there may be modifications or supplemental forms tailored for specific types of properties, such as single-family homes, multi-unit buildings, or undeveloped land. Note: It is essential to consult with a legal professional or real estate agent when using or preparing this agreement to ensure compliance with Alaska laws and to accurately address the unique circumstances of the transaction.Alaska General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a legal document commonly used in real estate transactions to outline the terms and conditions of the sale of residential properties in Alaska, where the buyer assumes the existing mortgage or deed of trust on the property. This agreement serves as a legal contract that protects the rights and interests of both the buyer and the seller involved in the transaction. Keywords: 1. Alaska: This refers to the US state where the agreement is being used. Alaska has its own specific laws and regulations related to real estate transactions that may differ from other states. 2. General Form: This highlights that the agreement follows a standardized format, providing a framework that can be easily customized to fit the specific details of the transaction. 3. Agreement of Sale: This signifies that the document is establishing a contract between the buyer and the seller for the sale of a residential property. 4. Residential Property: This specifies that the agreement pertains to the sale of a property designated for residential purposes, such as a house, condominium, or townhouse. 5. Assumption of Existing Mortgage: This clause indicates that the buyer takes on the responsibility of the seller's current mortgage loan, including the terms and obligations associated with it. 6. Deed of Trust: This term signifies an agreement between the buyer, seller, and lender, where the lender holds the deed to the property as security until the mortgage loan is paid in full. 7. Different Types: While the Alaska General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is typically applicable to various residential property sales, there may be modifications or supplemental forms tailored for specific types of properties, such as single-family homes, multi-unit buildings, or undeveloped land. Note: It is essential to consult with a legal professional or real estate agent when using or preparing this agreement to ensure compliance with Alaska laws and to accurately address the unique circumstances of the transaction.
