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 West Virginia General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a legally binding contract between a seller and buyer for the sale of a residential property in West Virginia. This agreement allows the buyer to assume an existing mortgage or deed of trust on the property, rather than obtaining new financing. This form ensures that both parties understand and agree to the terms and conditions of the sale, including the assumption of the mortgage or deed of trust. It contains specific provisions that protect the rights and obligations of the seller and buyer throughout the transaction. The West Virginia General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust may have variations based on the specific terms and conditions negotiated between the parties. Different types of this agreement may include: 1. Fixed-Rate Assumption: In this type of agreement, the buyer assumes a fixed-rate mortgage or deed of trust with a predetermined interest rate. The terms of the mortgage, such as the interest rate, payment schedule, and loan duration, are assumed by the buyer. 2. Adjustable-Rate Assumption: This agreement type involves the assumption of an adjustable-rate mortgage or deed of trust. The interest rate on the loan may fluctuate over time based on market conditions. 3. Conventional Loan Assumption: In this scenario, the buyer assumes a conventional mortgage or deed of trust, which is a loan not insured or guaranteed by the federal government. The terms of the loan should be stated in the agreement. 4. FHA Loan Assumption: This form of agreement involves the assumption of a mortgage or deed of trust insured by the Federal Housing Administration (FHA). The buyer must meet specific requirements, set by the FHA, to assume the loan. 5. VA Loan Assumption: This agreement type relates to the assumption of a mortgage or deed of trust guaranteed by the Department of Veterans Affairs (VA). The buyer must be eligible for VA loan assumption and meet specific criteria. The West Virginia General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a comprehensive document that outlines the rights, responsibilities, and obligations of both the seller and buyer. It ensures a clear understanding of the terms and conditions, protecting all parties involved in the transaction.The West Virginia General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a legally binding contract between a seller and buyer for the sale of a residential property in West Virginia. This agreement allows the buyer to assume an existing mortgage or deed of trust on the property, rather than obtaining new financing. This form ensures that both parties understand and agree to the terms and conditions of the sale, including the assumption of the mortgage or deed of trust. It contains specific provisions that protect the rights and obligations of the seller and buyer throughout the transaction. The West Virginia General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust may have variations based on the specific terms and conditions negotiated between the parties. Different types of this agreement may include: 1. Fixed-Rate Assumption: In this type of agreement, the buyer assumes a fixed-rate mortgage or deed of trust with a predetermined interest rate. The terms of the mortgage, such as the interest rate, payment schedule, and loan duration, are assumed by the buyer. 2. Adjustable-Rate Assumption: This agreement type involves the assumption of an adjustable-rate mortgage or deed of trust. The interest rate on the loan may fluctuate over time based on market conditions. 3. Conventional Loan Assumption: In this scenario, the buyer assumes a conventional mortgage or deed of trust, which is a loan not insured or guaranteed by the federal government. The terms of the loan should be stated in the agreement. 4. FHA Loan Assumption: This form of agreement involves the assumption of a mortgage or deed of trust insured by the Federal Housing Administration (FHA). The buyer must meet specific requirements, set by the FHA, to assume the loan. 5. VA Loan Assumption: This agreement type relates to the assumption of a mortgage or deed of trust guaranteed by the Department of Veterans Affairs (VA). The buyer must be eligible for VA loan assumption and meet specific criteria. The West Virginia General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a comprehensive document that outlines the rights, responsibilities, and obligations of both the seller and buyer. It ensures a clear understanding of the terms and conditions, protecting all parties involved in the transaction.
