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 Harris Texas 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 Harris County, Texas. This comprehensive form outlines the specific terms and conditions under which the sale of a residential property takes place, with the purchaser assuming the existing mortgage or deed of trust. Keywords: Harris Texas, General Form, Agreement of Sale, Residential Property, Assumption, Existing Mortgage, Deed of Trust, Real Estate Transaction, Terms, Conditions, Purchaser. There are different types of Harris Texas General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust, which include: 1. Standard Form: This is the most common version of the agreement and is used for typical residential property sales where the purchaser agrees to assume the existing mortgage or deed of trust. 2. Modified Form: This type of agreement is used when the parties involved wish to make specific modifications or additions to the terms and conditions of the standard form. It allows for customization to meet the unique requirements of the transaction. 3. Short Form: This simplified version of the agreement is used for straightforward residential property sales with assumption of an existing mortgage or deed of trust. It is suitable for transactions that do not require extensive legal provisions or complex negotiations. 4. Special Circumstances Form: This specialized form is used when there are unique circumstances or additional considerations involved in the transaction. It may include provisions for special financing, unconventional mortgage assumptions, or other specific requirements. The Harris Texas General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is designed to protect the interests of both the seller and purchaser while ensuring a smooth transfer of ownership. It covers essential aspects such as purchase price, financing terms, prorations, inspections, title commitments, and closing procedures. The agreement provides a legally binding framework for the transaction, ensuring clarity, transparency, and compliance with applicable laws and regulations in Harris County, Texas.The Harris Texas 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 Harris County, Texas. This comprehensive form outlines the specific terms and conditions under which the sale of a residential property takes place, with the purchaser assuming the existing mortgage or deed of trust. Keywords: Harris Texas, General Form, Agreement of Sale, Residential Property, Assumption, Existing Mortgage, Deed of Trust, Real Estate Transaction, Terms, Conditions, Purchaser. There are different types of Harris Texas General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust, which include: 1. Standard Form: This is the most common version of the agreement and is used for typical residential property sales where the purchaser agrees to assume the existing mortgage or deed of trust. 2. Modified Form: This type of agreement is used when the parties involved wish to make specific modifications or additions to the terms and conditions of the standard form. It allows for customization to meet the unique requirements of the transaction. 3. Short Form: This simplified version of the agreement is used for straightforward residential property sales with assumption of an existing mortgage or deed of trust. It is suitable for transactions that do not require extensive legal provisions or complex negotiations. 4. Special Circumstances Form: This specialized form is used when there are unique circumstances or additional considerations involved in the transaction. It may include provisions for special financing, unconventional mortgage assumptions, or other specific requirements. The Harris Texas General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is designed to protect the interests of both the seller and purchaser while ensuring a smooth transfer of ownership. It covers essential aspects such as purchase price, financing terms, prorations, inspections, title commitments, and closing procedures. The agreement provides a legally binding framework for the transaction, ensuring clarity, transparency, and compliance with applicable laws and regulations in Harris County, Texas.
