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 Oklahoma 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 in Oklahoma involving the sale of a residential property along with the assumption of an existing mortgage or deed of trust. This agreement serves as a binding contract between the seller and the buyer, establishing their rights and obligations throughout the sale process. Keywords: Oklahoma, General Form, Agreement of Sale, Residential Property, Assumption, Existing Mortgage, Deed of Trust There are different types of Oklahoma General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust. Some examples include: 1. Oklahoma General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage: This form specifically applies to cases where the buyer agrees to assume the seller's existing mortgage on the residential property being sold. 2. Oklahoma General Form of Agreement of Sale of Residential Property with Assumption of Existing Deed of Trust: This form is used when the buyer agrees to assume the seller's existing deed of trust on the residential property. 3. Oklahoma General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust and Additional Financing: This variation of the agreement includes provisions for additional financing, such as a second mortgage or a home equity loan, on top of assuming the seller's existing mortgage or deed of trust. 4. Oklahoma General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust — Cash Offer: This form is designed for cases where the buyer intends to purchase the residential property with cash and assumes the existing mortgage or deed of trust held by the seller. 5. Oklahoma General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust — SelleCarrbacCCKck Financing: This variation of the agreement involves the seller acting as the lender, financing part of the purchase price through a carry back mortgage or deed of trust assumption. It is essential for both the buyer and the seller to carefully review and understand the terms of the specific Oklahoma General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust that applies to their situation before entering into the transaction to ensure compliance with state laws and protect their interests.
