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.
In Fulton, Georgia, the 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 real estate transactions where a buyer assumes an existing mortgage or deed of trust on a residential property. This agreement outlines the terms and conditions agreed upon by both the seller and buyer, ensuring a smooth transfer of ownership. Keywords: Fulton, Georgia, General Form, Agreement of Sale, Residential Property, Assumption, Existing Mortgage, Deed of Trust. Different types of Fulton, Georgia General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust may include: 1. Conventional Assumption Agreement: This type of agreement is used when a buyer assumes a conventional mortgage or deed of trust on the residential property. It typically involves standard terms and conditions agreed upon by both parties. 2. FHA Assumption Agreement: In the case of a buyer assuming an FHA-insured mortgage or deed of trust, this specialized agreement is used. It includes specific provisions required by the Federal Housing Administration (FHA) for the assumption process. 3. VA Assumption Agreement: For buyers assuming a mortgage or deed of trust backed by the Department of Veterans Affairs (VA), this agreement is used. It contains provisions mandated by the VA for the smooth assumption of the existing loan. 4. Adjustable-Rate Mortgage (ARM) Assumption Agreement: If the residential property has an adjustable-rate mortgage, this agreement is employed. It includes provisions addressing the variable interest rates and potential rate adjustments that may occur during the loan assumption process. 5. Balloon Payment Assumption Agreement: In scenarios where the existing mortgage or deed of trust includes a balloon payment, this agreement is utilized. It contains provisions outlining the terms for the assumption of the loan and the handling of the balloon payment when it becomes due. Regardless of the specific type, the Fulton, Georgia General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust protects the interests of both parties involved, ensuring a smooth transition of ownership and adherence to legal requirements.In Fulton, Georgia, the 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 real estate transactions where a buyer assumes an existing mortgage or deed of trust on a residential property. This agreement outlines the terms and conditions agreed upon by both the seller and buyer, ensuring a smooth transfer of ownership. Keywords: Fulton, Georgia, General Form, Agreement of Sale, Residential Property, Assumption, Existing Mortgage, Deed of Trust. Different types of Fulton, Georgia General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust may include: 1. Conventional Assumption Agreement: This type of agreement is used when a buyer assumes a conventional mortgage or deed of trust on the residential property. It typically involves standard terms and conditions agreed upon by both parties. 2. FHA Assumption Agreement: In the case of a buyer assuming an FHA-insured mortgage or deed of trust, this specialized agreement is used. It includes specific provisions required by the Federal Housing Administration (FHA) for the assumption process. 3. VA Assumption Agreement: For buyers assuming a mortgage or deed of trust backed by the Department of Veterans Affairs (VA), this agreement is used. It contains provisions mandated by the VA for the smooth assumption of the existing loan. 4. Adjustable-Rate Mortgage (ARM) Assumption Agreement: If the residential property has an adjustable-rate mortgage, this agreement is employed. It includes provisions addressing the variable interest rates and potential rate adjustments that may occur during the loan assumption process. 5. Balloon Payment Assumption Agreement: In scenarios where the existing mortgage or deed of trust includes a balloon payment, this agreement is utilized. It contains provisions outlining the terms for the assumption of the loan and the handling of the balloon payment when it becomes due. Regardless of the specific type, the Fulton, Georgia General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust protects the interests of both parties involved, ensuring a smooth transition of ownership and adherence to legal requirements.
