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 Kings New York 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 Kings County, New York. This agreement allows for the sale of a residential property while assuming an existing mortgage or deed of trust. Keyword: Kings New York General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust This agreement is commonly used in situations where the buyer assumes the seller's mortgage or deed of trust instead of obtaining new financing. It enables the buyer to take over the existing loan, including its terms and conditions, from the seller. In this form of agreement, the parties involved must agree on the terms of the assumed mortgage or deed of trust, including the principal balance, interest rate, and remaining term. The agreement also outlines the responsibilities and liabilities of both the buyer and the seller in relation to the mortgage or deed of trust. Additionally, the agreement of sale includes details regarding the sale of the residential property itself. This can encompass crucial information like the property's address, legal description, purchase price, earnest money deposit, and closing date. Different types of Kings New York General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust may include specific provisions or clauses tailored to particular circumstances or parties involved. For instance, there could be variations for commercial properties, vacant land, or condominiums. However, each type will generally follow a similar structure and include the necessary elements for a legally binding agreement. It's worth noting that in some cases, the agreement may need to comply with additional requirements imposed by the State of New York and the local jurisdiction. Therefore, it is important for parties involved to seek legal advice and review the specific regulations applicable to their situation. Overall, the Kings New York General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust establishes the terms and conditions under which a residential property is sold while taking on the existing mortgage or deed of trust. It provides a legal framework for both the buyer and the seller, ensuring the smooth transfer of ownership and obligations related to the property and its financing.
