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.
The Arkansas 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 within the state of Arkansas. This agreement outlines the terms and conditions under which a buyer will purchase a residential property while assuming the existing mortgage or deed of trust. Keywords: Arkansas, General Form, Agreement of Sale, Residential Property, Assumption, Existing Mortgage, Deed of Trust. In Arkansas, there are various types of the General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust, tailored to specific scenarios or parties involved. Here are some variations: 1. Buyer-Seller Agreement: This is the standard version of the agreement, typically used when a buyer is purchasing a residential property directly from the seller and assuming their existing mortgage or deed of trust. 2. Broker-Assisted Agreement: In cases where a real estate broker or agent assists in the sale and assumes certain responsibilities, a specialized General Form of Agreement may be used to outline the roles and obligations of all parties involved. 3. Joint Agreement: When multiple buyers or sellers are involved in the transaction, a joint agreement can be used to outline how the assumption of the existing mortgage or deed of trust will be shared among the co-owners. 4. Lender-Approved Agreement: Sometimes, a lender might have specific requirements or modifications that need to be incorporated into the General Form of Agreement. This version ensures compliance with the lender's conditions. 5. Seller-Financed Agreement: In situations where the seller finances the purchase by allowing the buyer to make payments directly to them with an assumption of the current mortgage or deed of trust, a seller-financed agreement can be used. This agreement outlines the terms of the financing arrangement. These different forms ensure that the General Form of Agreement is adaptable to different real estate scenarios, facilitating smooth transactions while protecting the rights and obligations of all parties involved in the sale of a residential property in Arkansas.The Arkansas 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 within the state of Arkansas. This agreement outlines the terms and conditions under which a buyer will purchase a residential property while assuming the existing mortgage or deed of trust. Keywords: Arkansas, General Form, Agreement of Sale, Residential Property, Assumption, Existing Mortgage, Deed of Trust. In Arkansas, there are various types of the General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust, tailored to specific scenarios or parties involved. Here are some variations: 1. Buyer-Seller Agreement: This is the standard version of the agreement, typically used when a buyer is purchasing a residential property directly from the seller and assuming their existing mortgage or deed of trust. 2. Broker-Assisted Agreement: In cases where a real estate broker or agent assists in the sale and assumes certain responsibilities, a specialized General Form of Agreement may be used to outline the roles and obligations of all parties involved. 3. Joint Agreement: When multiple buyers or sellers are involved in the transaction, a joint agreement can be used to outline how the assumption of the existing mortgage or deed of trust will be shared among the co-owners. 4. Lender-Approved Agreement: Sometimes, a lender might have specific requirements or modifications that need to be incorporated into the General Form of Agreement. This version ensures compliance with the lender's conditions. 5. Seller-Financed Agreement: In situations where the seller finances the purchase by allowing the buyer to make payments directly to them with an assumption of the current mortgage or deed of trust, a seller-financed agreement can be used. This agreement outlines the terms of the financing arrangement. These different forms ensure that the General Form of Agreement is adaptable to different real estate scenarios, facilitating smooth transactions while protecting the rights and obligations of all parties involved in the sale of a residential property in Arkansas.
