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 Oregon 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 residential property in the state of Oregon. This agreement allows the buyer of the property to assume the existing mortgage or deed of trust instead of obtaining a new loan. Keywords: Oregon, general form, agreement of sale, residential property, assumption of existing mortgage, deed of trust. There are a few different types of Oregon General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust, depending on specific circumstances and preferences. These variations include: 1. Standard Agreement: This is the most commonly used form, which outlines the essential details of the sale, such as the property address, purchase price, down payment, and terms of assumption of the existing mortgage or deed of trust. 2. Addendum for Financing Terms: This form is used when the buyer and seller agree to modify certain financial aspects of the assumption, such as interest rates, payment schedules, or other terms related to the mortgage or deed of trust. 3. Property Inspection Addendum: In cases where the buyer wants to conduct a home inspection before completing the sale, this addendum is added to the agreement. It specifies the timeframe for the inspection and the necessary actions to be taken based on the inspection results. 4. Appraisal Contingency Addendum: If the buyer wishes to include an appraisal contingency clause in the agreement, this addendum is attached. It ensures that the sale is contingent upon the property's appraised value meeting or exceeding the agreed-upon purchase price. 5. Title Contingency Addendum: This addendum is used when the buyer wants the sale to be contingent upon a satisfactory title search and insurance. It ensures that the property's title is clear of any liens or encumbrances that could affect the buyer's ownership rights. 6. Financing Contingency Addendum: In cases where the buyer wants to secure financing to complete the purchase, this form is used to outline the timeline and conditions for obtaining a loan. If the buyer fails to secure financing within the specified timeframe, the sale may be terminated. It is important to consult with a qualified real estate attorney or agent familiar with Oregon laws to determine the most appropriate type of agreement for a specific residential property sale with the assumption of an existing mortgage or deed of trust.
