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 Missouri General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a legal document that establishes the terms and conditions of the sale of a residential property. This agreement specifically addresses the assumption of an existing mortgage or deed of trust by the buyer. Keywords: Missouri, General Form, Agreement of Sale, Residential Property, Assumption, Existing Mortgage, Deed of Trust. This agreement is commonly used in real estate transactions in Missouri, ensuring a smooth transfer of ownership and the assumption of the existing mortgage or deed of trust by the buyer. It provides legal protection and clarity for both parties involved in the sale. The Missouri General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust includes various sections that cover important aspects of the transaction. For example, it outlines the identification of the property, purchase price, and closing date. The agreement also specifies the terms and conditions of the assumption of the existing mortgage or deed of trust, including the outstanding balance, interest rate, and other relevant details. Additionally, the agreement addresses any potential contingencies, such as property inspections, financing, or other conditions that need to be met for the sale to proceed. It also includes provisions for the allocation of closing costs, taxes, and prorated payments. Different types or variations of the Missouri 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 individual requirements. These variations may include additional clauses or provisions tailored to meet the unique needs of the buyer, seller, or the property itself. It is essential for all parties involved in a residential property sale in Missouri to consult with a qualified real estate attorney or agent to ensure the proper completion and understanding of the Missouri General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust.
