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 Louisiana General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a legal document that outlines the terms and conditions of a real estate transaction involving the transfer of a residential property with the assumption of an existing mortgage or deed of trust. This agreement is commonly used in Louisiana for the sale of real estate properties. This comprehensive agreement covers all the essential elements of the transaction, including the identification of the parties involved, the property details, the terms of the assumption of the mortgage or deed of trust, and the rights and responsibilities of the buyer and seller. It also includes provisions for contingencies, disclosures, and any additional terms or conditions agreed upon by the parties. Key elements included in the Louisiana General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust are: 1. Parties: Clearly identifying both the buyer (assumed) and seller (assumed) of the property along with their contact information. 2. Property Description: Providing a detailed description of the residential property being sold, including the address, legal description, and any other relevant details. 3. Purchase Price and Terms: Specifying the agreed-upon purchase price for the property, along with the terms of payment, such as the down payment amount, financing arrangements, and the delivery of funds. 4. Assumption of Mortgage or Deed of Trust: Outlining the existing mortgage or deed of trust on the property that the buyer will assume responsibility for. This section includes the amount owed, interest rate, payment schedule, and any additional terms or conditions. 5. Disclosures: Providing a section for the seller to disclose any known defects or issues with the property that may impact the buyer's decision to purchase. 6. Contingencies: Allowing for the inclusion of contingencies, such as inspections, approvals, or the sale of the buyer's existing property, that must be satisfied for the agreement to be binding. 7. Closing and Settlement: Detailing the time and place of the closing, as well as the allocation of closing costs and expenses between the buyer and seller. Different types or variations of the Louisiana General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust may exist based on specific circumstances, requirements, or modifications agreed upon by the parties involved. Some common variations include agreements for properties with multiple mortgages, agreements for properties subject to a land contract, and agreements with specific provisions tailored to individual situations. It is important to consult with a legal professional or seek appropriate legal advice to ensure compliance with Louisiana state laws and to customize the agreement to meet the specific needs of the transaction.The Louisiana General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a legal document that outlines the terms and conditions of a real estate transaction involving the transfer of a residential property with the assumption of an existing mortgage or deed of trust. This agreement is commonly used in Louisiana for the sale of real estate properties. This comprehensive agreement covers all the essential elements of the transaction, including the identification of the parties involved, the property details, the terms of the assumption of the mortgage or deed of trust, and the rights and responsibilities of the buyer and seller. It also includes provisions for contingencies, disclosures, and any additional terms or conditions agreed upon by the parties. Key elements included in the Louisiana General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust are: 1. Parties: Clearly identifying both the buyer (assumed) and seller (assumed) of the property along with their contact information. 2. Property Description: Providing a detailed description of the residential property being sold, including the address, legal description, and any other relevant details. 3. Purchase Price and Terms: Specifying the agreed-upon purchase price for the property, along with the terms of payment, such as the down payment amount, financing arrangements, and the delivery of funds. 4. Assumption of Mortgage or Deed of Trust: Outlining the existing mortgage or deed of trust on the property that the buyer will assume responsibility for. This section includes the amount owed, interest rate, payment schedule, and any additional terms or conditions. 5. Disclosures: Providing a section for the seller to disclose any known defects or issues with the property that may impact the buyer's decision to purchase. 6. Contingencies: Allowing for the inclusion of contingencies, such as inspections, approvals, or the sale of the buyer's existing property, that must be satisfied for the agreement to be binding. 7. Closing and Settlement: Detailing the time and place of the closing, as well as the allocation of closing costs and expenses between the buyer and seller. Different types or variations of the Louisiana General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust may exist based on specific circumstances, requirements, or modifications agreed upon by the parties involved. Some common variations include agreements for properties with multiple mortgages, agreements for properties subject to a land contract, and agreements with specific provisions tailored to individual situations. It is important to consult with a legal professional or seek appropriate legal advice to ensure compliance with Louisiana state laws and to customize the agreement to meet the specific needs of the transaction.
