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 Ohio 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 sale of a residential property in Ohio. This form is specifically designed for situations where the buyer intends to assume an existing mortgage or deed of trust on the property. The agreement serves as a binding contract between the buyer and the seller, outlining the terms and conditions of the sale. It covers various aspects of the transaction, including the purchase price, deposit amount, financing, closing date, and specific provisions related to assuming the existing mortgage or deed of trust. Keywords: Ohio, General Form, Agreement of Sale, Residential Property, Assumption, Existing Mortgage, Deed of Trust. Different types of Ohio General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust may include variations based on the specific details of the transaction. Some examples include: 1. Ohio General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage: This form is used when the buyer wishes to assume an existing mortgage on the property without involving a deed of trust. 2. Ohio General Form of Agreement of Sale of Residential Property with Assumption of Existing Deed of Trust: This form is used when the buyer intends to assume an existing deed of trust on the property instead of a mortgage. 3. Ohio General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust and Seller Financing: This variation includes provisions for seller financing in addition to assuming the existing mortgage or deed of trust. 4. Ohio General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust and Contingencies: This form includes additional contingencies that must be fulfilled for the transaction to proceed, such as home inspections or satisfactory appraisals. It is important to note that the specific names and variations of Ohio General Forms may differ based on individual jurisdictions and legal requirements. It is recommended to consult with a real estate attorney or a knowledgeable professional to ensure the correct form is used for the particular transaction.
