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.
Maine General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a legally binding contract used in Maine to facilitate the sale of residential properties where the buyer assumes the existing mortgage or deed of trust. This agreement outlines the terms and conditions agreed upon by both the buyer and the seller, ensuring a smooth and transparent transaction. The following are some important keywords related to the Maine General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust: 1. Maine real estate: Refers to properties located within the state of Maine. 2. Agreement of sale: A contract entered into by both the buyer and seller, outlining the terms and conditions of the sale. 3. Residential property: Represents a house, condominium, townhouse, or any other property primarily used as a dwelling. 4. Assumption of mortgage: Occurs when the buyer agrees to take over the existing mortgage or deed of trust from the seller, assuming responsibility for its repayment. 5. Existing mortgage or deed of trust: Refers to the current loan secured by the property being sold. 6. Terms and conditions: Specifies the obligations, responsibilities, and rights of both the buyer and the seller during the sale process. 7. Purchase price: The agreed-upon amount that the buyer will pay to the seller in exchange for the property. 8. Closing costs: Expenses incurred during the transfer of ownership, such as attorney fees, title insurance, and recording fees. 9. Contingencies: Conditions that must be satisfied for the agreement to move forward, such as the buyer obtaining financing or property inspections. 10. Disclosures: Information provided by the seller regarding the property's condition, legal issues, or other material facts that may affect the buyer's decision. 11. Title search: The process of examining public records to ensure that the seller has legal ownership of the property, free from any liens or claims. 12. Property inspection: A thorough examination of the property's physical condition, conducted by a professional inspector hired by the buyer. 13. Earnest money deposit: A sum of money that the buyer submits to demonstrate their seriousness about purchasing the property. 14. Closing date: The date on which the transaction is completed, and ownership of the property is transferred from the seller to the buyer. Different variations or types of the Maine General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust may exist based on specific clauses, addendums, or additional provisions demanded by either party or due to special circumstances.
