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 Massachusetts 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 involving the purchase of a residential property where the buyer assumes the existing mortgage or deed of trust. This agreement outlines the terms and conditions agreed upon by the buyer and seller, along with the specifics of the assumption of the mortgage or deed of trust. Keywords: Massachusetts General Form of Agreement of Sale, Residential Property, Assumption of Existing Mortgage, Deed of Trust, Real Estate Transactions, Purchase, Buyer, Seller, Terms and Conditions. There are no different types of Massachusetts General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust, as it is a standard form used in Massachusetts real estate transactions. However, there may be variations in the specific details included within the agreement based on the unique circumstances of each transaction. The agreement typically begins with the identification of the buyer, seller, and the property being sold. It specifies the purchase price, deposit, and the terms of payment. Additionally, it outlines the conditions under which the buyer assumes the existing mortgage or deed of trust, including any necessary approvals or documentation. The agreement may also include clauses related to property inspections, repairs, and disclosures, providing protection for both the buyer and seller. Further details regarding the closing process, prorations of taxes and assessments, and the transfer of title are typically covered in the agreement as well. Key provisions of the Massachusetts General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust may include contingency clauses allowing the buyer to conduct inspections and secure financing. There might also be provisions regarding the disclosure of any defects or issues with the property by the seller. It is important to note that the Massachusetts General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a legally binding document, and any modifications or additions should be made in consultation with a qualified real estate attorney. In summary, the Massachusetts General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a standardized legal document used in Massachusetts for real estate transactions involving the assumption of an existing mortgage or deed of trust. It establishes the terms and conditions of the sale, addressing key aspects such as purchase price, deposit, payment terms, property inspections, repairs, disclosures, and the transfer of title.
