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.
Oakland, Michigan 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 that involve the transfer of residential property in Oakland, Michigan, and the assumption of an existing mortgage or deed of trust by the buyer. This agreement is important for buyers and sellers who wish to streamline the home buying process by assuming the mortgage or deed of trust on the property. By assuming the existing loan, the buyer takes over the responsibility for the mortgage payments and related obligations, which can save time and resources compared to obtaining a new loan. The Oakland, Michigan General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust includes various sections, such as: 1. Parties: This section identifies the parties involved in the agreement, including the buyer, seller, and any other relevant individuals or entities. 2. Property Description: It provides a detailed description of the residential property, including its address, legal description, and any other relevant details that uniquely identify the property. 3. Purchase Price: This section outlines the agreed-upon purchase price for the property, which may also include additional terms relating to the payment method and any contingencies. 4. Existing Mortgage or Deed of Trust: Here, the agreement specifies the existing mortgage or deed of trust that the buyer will assume, including details such as the lender's name, loan amount, interest rate, and repayment terms. It may also include provisions for the buyer's qualification and assumption approval process. 5. Assumption Agreement: This part includes the buyer's agreement to assume the mortgage or deed of trust, assuming all responsibilities and liabilities associated with the loan after the property transfer. 6. Seller's Representations and Warranties: This section outlines any representations or warranties made by the seller regarding the property's condition, ownership rights, and other relevant matters. It may also include disclosures regarding any known defects or issues. It's important to note that there may be different variations or specific forms of the Oakland, Michigan General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust, depending on the specific requirements or preferences of the parties involved or any additional legal considerations. However, the overall purpose and structure of the agreement remain similar in each case.Oakland, Michigan 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 that involve the transfer of residential property in Oakland, Michigan, and the assumption of an existing mortgage or deed of trust by the buyer. This agreement is important for buyers and sellers who wish to streamline the home buying process by assuming the mortgage or deed of trust on the property. By assuming the existing loan, the buyer takes over the responsibility for the mortgage payments and related obligations, which can save time and resources compared to obtaining a new loan. The Oakland, Michigan General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust includes various sections, such as: 1. Parties: This section identifies the parties involved in the agreement, including the buyer, seller, and any other relevant individuals or entities. 2. Property Description: It provides a detailed description of the residential property, including its address, legal description, and any other relevant details that uniquely identify the property. 3. Purchase Price: This section outlines the agreed-upon purchase price for the property, which may also include additional terms relating to the payment method and any contingencies. 4. Existing Mortgage or Deed of Trust: Here, the agreement specifies the existing mortgage or deed of trust that the buyer will assume, including details such as the lender's name, loan amount, interest rate, and repayment terms. It may also include provisions for the buyer's qualification and assumption approval process. 5. Assumption Agreement: This part includes the buyer's agreement to assume the mortgage or deed of trust, assuming all responsibilities and liabilities associated with the loan after the property transfer. 6. Seller's Representations and Warranties: This section outlines any representations or warranties made by the seller regarding the property's condition, ownership rights, and other relevant matters. It may also include disclosures regarding any known defects or issues. It's important to note that there may be different variations or specific forms of the Oakland, Michigan General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust, depending on the specific requirements or preferences of the parties involved or any additional legal considerations. However, the overall purpose and structure of the agreement remain similar in each case.
