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 Kentucky General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a legally binding document used when selling residential property in the state of Kentucky while also assuming an existing mortgage or deed of trust. This agreement outlines the terms and conditions of the sale, ensuring that both parties are protected and their rights are respected throughout the transaction process. Key terms included in the Kentucky General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust may include: 1. Parties: Names and contact information of both the seller and buyer. 2. Property Description: Detailed information about the residential property being sold, including its address, lot size, and any important features. 3. Purchase Price: The agreed-upon amount that the buyer is willing to pay for the property. 4. Assumption of Existing Mortgage or Deed of Trust: This provision outlines the specific details of the existing mortgage or deed of trust that the buyer will be assuming, including the outstanding balance, interest rate, and any necessary approvals or permissions required. 5. Earnest Money Deposit: The amount of money the buyer will pay as earnest money to demonstrate their commitment to the transaction. This deposit is typically held in escrow until closing. 6. Closing Date: The date and location scheduled for the final transfer of the property from the seller to the buyer. 7. Contingencies: Any conditions that must be satisfied for the sale to proceed, such as home inspections, appraisals, or mortgage loan approval. 8. Property Condition: The condition of the property at the time of sale and any warranties or guarantees provided by the seller. 9. Closing Costs: Explanation of which party is responsible for covering the closing costs associated with the sale, including title search fees, attorney fees, recording fees, etc. 10. Default and Remedies: The consequences and potential remedies if one party fails to meet their obligations as agreed upon in the contract, such as termination of the agreement or legal action. Different variations or types of the Kentucky General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust may exist, tailored to specific circumstances or additional provisions required by the parties involved. However, the general structure and key elements mentioned above tend to remain consistent across different versions.The Kentucky General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a legally binding document used when selling residential property in the state of Kentucky while also assuming an existing mortgage or deed of trust. This agreement outlines the terms and conditions of the sale, ensuring that both parties are protected and their rights are respected throughout the transaction process. Key terms included in the Kentucky General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust may include: 1. Parties: Names and contact information of both the seller and buyer. 2. Property Description: Detailed information about the residential property being sold, including its address, lot size, and any important features. 3. Purchase Price: The agreed-upon amount that the buyer is willing to pay for the property. 4. Assumption of Existing Mortgage or Deed of Trust: This provision outlines the specific details of the existing mortgage or deed of trust that the buyer will be assuming, including the outstanding balance, interest rate, and any necessary approvals or permissions required. 5. Earnest Money Deposit: The amount of money the buyer will pay as earnest money to demonstrate their commitment to the transaction. This deposit is typically held in escrow until closing. 6. Closing Date: The date and location scheduled for the final transfer of the property from the seller to the buyer. 7. Contingencies: Any conditions that must be satisfied for the sale to proceed, such as home inspections, appraisals, or mortgage loan approval. 8. Property Condition: The condition of the property at the time of sale and any warranties or guarantees provided by the seller. 9. Closing Costs: Explanation of which party is responsible for covering the closing costs associated with the sale, including title search fees, attorney fees, recording fees, etc. 10. Default and Remedies: The consequences and potential remedies if one party fails to meet their obligations as agreed upon in the contract, such as termination of the agreement or legal action. Different variations or types of the Kentucky General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust may exist, tailored to specific circumstances or additional provisions required by the parties involved. However, the general structure and key elements mentioned above tend to remain consistent across different versions.
