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.
Key Terms: Wyoming, General Form of Agreement, Sale of Residential Property, Assumption of Existing Mortgage, Deed of Trust. Description: The Wyoming General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a legally binding document used in Wyoming for the sale of residential properties, where the buyer assumes the existing mortgage or deed of trust associated with the property. This agreement is designed to outline the terms and conditions agreed upon by the buyer and seller for the transfer of ownership of a residential property, while also addressing the existing mortgage or deed of trust obligations. It is essential to have this agreement in place to protect the rights and interests of both parties involved in the transaction. The Wyoming General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust typically includes key elements such as: 1. Identification of the buyer and seller: The agreement clearly identifies the parties involved in the transaction, including their legal names and contact information. 2. Property description: The agreement provides a detailed description of the residential property being sold, including the address, legal boundaries, and any additional features or amenities. 3. Purchase price and payment terms: The agreement establishes the purchase price for the property and outlines the payment terms agreed upon by the buyer and seller. This includes the down payment, financing options, and any installments or lump-sum payments based on the existing mortgage or deed of trust. 4. Assumption of existing mortgage or deed of trust: This section outlines the terms and conditions under which the buyer agrees to take on the existing mortgage or deed of trust associated with the property. It covers aspects like the remaining balance, interest rate, payment schedule, and any other relevant details. 5. Closing and possession: The agreement determines the date and location of the property closing, as well as the transfer of possession from the seller to the buyer. It may also include provisions for property inspections, repairs, and contingencies. 6. Representations and warranties: Both parties make certain representations and warranties regarding the property's condition, any undisclosed issues, and compliance with applicable laws or regulations. 7. Default and remedies: This section defines the actions that can be taken by either party in case of default or breach of the agreement, including the right to terminate the contract, seek damages, or specific performance. 8. Contingencies: The agreement may include contingencies, such as obtaining necessary financing, property inspections, or the sale of the buyer's existing property. 9. Governing law: The agreement specifies that it will be governed by the laws of the state of Wyoming, ensuring compliance with the state's regulations. It is worth noting that Wyoming may also have specific variations or additional forms of the General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust. These may cater to specific situations, such as different types of properties or unique circumstances regarding mortgages or deeds of trust. In conclusion, the Wyoming General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a comprehensive legal document that serves as a blueprint for the sale of residential properties, while taking into account the existing mortgage or deed of trust associated with the property. It helps ensure a smooth and transparent transaction between the buyer and seller while protecting their respective rights and interests.Key Terms: Wyoming, General Form of Agreement, Sale of Residential Property, Assumption of Existing Mortgage, Deed of Trust. Description: The Wyoming General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a legally binding document used in Wyoming for the sale of residential properties, where the buyer assumes the existing mortgage or deed of trust associated with the property. This agreement is designed to outline the terms and conditions agreed upon by the buyer and seller for the transfer of ownership of a residential property, while also addressing the existing mortgage or deed of trust obligations. It is essential to have this agreement in place to protect the rights and interests of both parties involved in the transaction. The Wyoming General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust typically includes key elements such as: 1. Identification of the buyer and seller: The agreement clearly identifies the parties involved in the transaction, including their legal names and contact information. 2. Property description: The agreement provides a detailed description of the residential property being sold, including the address, legal boundaries, and any additional features or amenities. 3. Purchase price and payment terms: The agreement establishes the purchase price for the property and outlines the payment terms agreed upon by the buyer and seller. This includes the down payment, financing options, and any installments or lump-sum payments based on the existing mortgage or deed of trust. 4. Assumption of existing mortgage or deed of trust: This section outlines the terms and conditions under which the buyer agrees to take on the existing mortgage or deed of trust associated with the property. It covers aspects like the remaining balance, interest rate, payment schedule, and any other relevant details. 5. Closing and possession: The agreement determines the date and location of the property closing, as well as the transfer of possession from the seller to the buyer. It may also include provisions for property inspections, repairs, and contingencies. 6. Representations and warranties: Both parties make certain representations and warranties regarding the property's condition, any undisclosed issues, and compliance with applicable laws or regulations. 7. Default and remedies: This section defines the actions that can be taken by either party in case of default or breach of the agreement, including the right to terminate the contract, seek damages, or specific performance. 8. Contingencies: The agreement may include contingencies, such as obtaining necessary financing, property inspections, or the sale of the buyer's existing property. 9. Governing law: The agreement specifies that it will be governed by the laws of the state of Wyoming, ensuring compliance with the state's regulations. It is worth noting that Wyoming may also have specific variations or additional forms of the General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust. These may cater to specific situations, such as different types of properties or unique circumstances regarding mortgages or deeds of trust. In conclusion, the Wyoming General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a comprehensive legal document that serves as a blueprint for the sale of residential properties, while taking into account the existing mortgage or deed of trust associated with the property. It helps ensure a smooth and transparent transaction between the buyer and seller while protecting their respective rights and interests.
