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.
Cook Illinois 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 in Cook County, Illinois. This agreement is designed to facilitate the sale of a residential property while assuming the existing mortgage or deed of trust on the property. It is an important document that outlines the terms and conditions of the sale and provides legal protection for both the buyer and the seller. The Cook Illinois General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust may have different variations depending on the specific terms and conditions agreed upon by the parties involved. Some of these variations may include: 1. Fixed-rate assumption: This type of agreement allows the buyer to assume the existing mortgage or deed of trust at a fixed interest rate. The terms and conditions of the existing mortgage, such as monthly payments and maturity date, remain unchanged. 2. Adjustable-rate assumption: In this type of agreement, the buyer assumes the existing mortgage or deed of trust with an adjustable interest rate. The interest rate may change periodically based on market conditions, and the buyer is responsible for making the necessary adjustments to the monthly payments. 3. Partial assumption: This variation allows the buyer to assume a portion of the existing mortgage or deed of trust while arranging for alternative financing for the remaining amount. This option is commonly used when the buyer cannot qualify for the full mortgage amount. The Cook Illinois General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust includes several essential components. These may include: 1. Identification of the parties involved: The agreement should clearly identify the buyer(s), seller(s), and any other relevant parties, such as the lender or mortgage holder. 2. Property description: A detailed description of the residential property being sold, including the address, legal description, and any relevant details about the property's condition and amenities. 3. Mortgage or deed of trust assumption: The agreement should outline the terms and conditions of assuming the existing mortgage or deed of trust, including the outstanding balance, interest rate, monthly payments, maturity date, and any other relevant details. 4. Purchase price and payment terms: The agreement should include the agreed-upon purchase price for the property and outline the payment terms, including any down payment, financing arrangements, and the schedule for future payments. 5. Contingencies and disclosures: The agreement may include contingencies such as property inspections, financing approvals, and any other relevant conditions that need to be satisfied before the sale can proceed. It should also include disclosures required by law, such as lead-based paint disclosures or property disclosure statements. 6. Closing and possession: The agreement should specify the closing date, location, and any other relevant details related to the transfer of ownership. It should also outline the terms for the buyer to take possession of the property after closing. It is important to note that the Cook Illinois General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a legally binding document. Furthermore, it is advisable for both the buyer and the seller to seek legal counsel and review the agreement thoroughly before signing.Cook Illinois 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 in Cook County, Illinois. This agreement is designed to facilitate the sale of a residential property while assuming the existing mortgage or deed of trust on the property. It is an important document that outlines the terms and conditions of the sale and provides legal protection for both the buyer and the seller. The Cook Illinois General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust may have different variations depending on the specific terms and conditions agreed upon by the parties involved. Some of these variations may include: 1. Fixed-rate assumption: This type of agreement allows the buyer to assume the existing mortgage or deed of trust at a fixed interest rate. The terms and conditions of the existing mortgage, such as monthly payments and maturity date, remain unchanged. 2. Adjustable-rate assumption: In this type of agreement, the buyer assumes the existing mortgage or deed of trust with an adjustable interest rate. The interest rate may change periodically based on market conditions, and the buyer is responsible for making the necessary adjustments to the monthly payments. 3. Partial assumption: This variation allows the buyer to assume a portion of the existing mortgage or deed of trust while arranging for alternative financing for the remaining amount. This option is commonly used when the buyer cannot qualify for the full mortgage amount. The Cook Illinois General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust includes several essential components. These may include: 1. Identification of the parties involved: The agreement should clearly identify the buyer(s), seller(s), and any other relevant parties, such as the lender or mortgage holder. 2. Property description: A detailed description of the residential property being sold, including the address, legal description, and any relevant details about the property's condition and amenities. 3. Mortgage or deed of trust assumption: The agreement should outline the terms and conditions of assuming the existing mortgage or deed of trust, including the outstanding balance, interest rate, monthly payments, maturity date, and any other relevant details. 4. Purchase price and payment terms: The agreement should include the agreed-upon purchase price for the property and outline the payment terms, including any down payment, financing arrangements, and the schedule for future payments. 5. Contingencies and disclosures: The agreement may include contingencies such as property inspections, financing approvals, and any other relevant conditions that need to be satisfied before the sale can proceed. It should also include disclosures required by law, such as lead-based paint disclosures or property disclosure statements. 6. Closing and possession: The agreement should specify the closing date, location, and any other relevant details related to the transfer of ownership. It should also outline the terms for the buyer to take possession of the property after closing. It is important to note that the Cook Illinois General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a legally binding document. Furthermore, it is advisable for both the buyer and the seller to seek legal counsel and review the agreement thoroughly before signing.
