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 Georgia 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 Georgia. This agreement outlines the terms and conditions for the sale of a residential property, wherein the buyer assumes the existing mortgage or deed of trust on the property. This agreement is relevant for individuals or entities involved in the sale or purchase of residential properties in Georgia, particularly when the buyer wishes to take over the existing mortgage or deed of trust instead of obtaining a new one. It provides a framework for both parties to ensure a smooth transfer of ownership and assumption of the mortgage or deed of trust. Some relevant keywords associated with the Georgia General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust include: 1. Sale of Residential Property: This agreement pertains specifically to the sale of residential properties, including houses, apartments, or condominiums. 2. Assumption: The buyer undertakes the responsibility of assuming the existing mortgage or deed of trust on the property, rather than obtaining a new loan. 3. Existing Mortgage: Refers to the loan already in place on the property prior to the sale. The buyer agrees to take on the obligations and terms of this mortgage. 4. Deed of Trust: Similar to a mortgage, a deed of trust is a legal document that secures a loan on the property and is used in some states, including Georgia, instead of a traditional mortgage. Different variations or types of the Georgia General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust may exist based on specific circumstances or additional clauses and provisions. These variations could include: 1. Agreement with Loan Assumption Contingency: If the buyer wishes to assume the existing mortgage or deed of trust but wants the option to back out if certain conditions are not met, a contingency clause can be added to the agreement. 2. Agreement with Seller Financing: In some cases, the seller might be willing to finance a portion of the sale, either alongside the existing mortgage or deed of trust or as the sole financing option. 3. Agreement with Modification of Existing Mortgage: This variation allows for the modification of the terms of the existing mortgage or deed of trust, such as adjusting interest rates or extending the payment period. It is important to consult a qualified attorney or real estate professional familiar with Georgia laws and regulations to ensure the accuracy and legality of any specific form or variation of the Georgia General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust.The Georgia 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 Georgia. This agreement outlines the terms and conditions for the sale of a residential property, wherein the buyer assumes the existing mortgage or deed of trust on the property. This agreement is relevant for individuals or entities involved in the sale or purchase of residential properties in Georgia, particularly when the buyer wishes to take over the existing mortgage or deed of trust instead of obtaining a new one. It provides a framework for both parties to ensure a smooth transfer of ownership and assumption of the mortgage or deed of trust. Some relevant keywords associated with the Georgia General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust include: 1. Sale of Residential Property: This agreement pertains specifically to the sale of residential properties, including houses, apartments, or condominiums. 2. Assumption: The buyer undertakes the responsibility of assuming the existing mortgage or deed of trust on the property, rather than obtaining a new loan. 3. Existing Mortgage: Refers to the loan already in place on the property prior to the sale. The buyer agrees to take on the obligations and terms of this mortgage. 4. Deed of Trust: Similar to a mortgage, a deed of trust is a legal document that secures a loan on the property and is used in some states, including Georgia, instead of a traditional mortgage. Different variations or types of the Georgia General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust may exist based on specific circumstances or additional clauses and provisions. These variations could include: 1. Agreement with Loan Assumption Contingency: If the buyer wishes to assume the existing mortgage or deed of trust but wants the option to back out if certain conditions are not met, a contingency clause can be added to the agreement. 2. Agreement with Seller Financing: In some cases, the seller might be willing to finance a portion of the sale, either alongside the existing mortgage or deed of trust or as the sole financing option. 3. Agreement with Modification of Existing Mortgage: This variation allows for the modification of the terms of the existing mortgage or deed of trust, such as adjusting interest rates or extending the payment period. It is important to consult a qualified attorney or real estate professional familiar with Georgia laws and regulations to ensure the accuracy and legality of any specific form or variation of the Georgia General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust.
