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 Travis Texas General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a legal document that outlines the terms and conditions for the sale and transfer of a residential property located in Travis County, Texas. This agreement involves the assumption of an existing mortgage or deed of trust by the buyer. Key terms and keywords related to the Travis Texas General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust: 1. Travis County, Texas: Travis County is located in central Texas and encompasses the state capital, Austin. It is a highly desirable area known for its vibrant cultural scene, economic opportunities, and beautiful natural attractions. 2. Residential Property: Refers to a property primarily used for dwelling purposes, such as a single-family home, condominium, townhouse, or duplex. 3. Agreement of Sale: A legally binding contract between the seller and the buyer, outlining the terms and conditions of the property sale. 4. Assumption of Existing Mortgage: The buyer agrees to take on the seller's existing mortgage loan, assuming the responsibility for making payments and complying with the terms set by the lender. 5. Deed of Trust: A legal document that serves as a security interest in real property, similar to a mortgage. It provides the lender with the right to foreclose on the property if the borrower defaults on the loan. Types of Travis Texas General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust: 1. Residential Property with Assumption of Mortgage: This type of agreement involves the buyer assuming the existing mortgage on the property, usually by qualifying with the lender and paying any necessary fees or deposits. 2. Residential Property with Assumption of Deed of Trust: In this case, the buyer assumes the existing deed of trust, which functions similarly to a mortgage, and becomes responsible for making payments and complying with its terms. 3. Residential Property with Assumption of Mortgage and Deed of Trust: This type of agreement combines both the assumption of an existing mortgage and an existing deed of trust, depending on the specifics and contractual obligations of the property sale. It's important to consult a real estate attorney or professional to ensure that the Travis Texas General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is tailored to your specific situation and complies with all relevant laws and regulations.The Travis Texas General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is a legal document that outlines the terms and conditions for the sale and transfer of a residential property located in Travis County, Texas. This agreement involves the assumption of an existing mortgage or deed of trust by the buyer. Key terms and keywords related to the Travis Texas General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust: 1. Travis County, Texas: Travis County is located in central Texas and encompasses the state capital, Austin. It is a highly desirable area known for its vibrant cultural scene, economic opportunities, and beautiful natural attractions. 2. Residential Property: Refers to a property primarily used for dwelling purposes, such as a single-family home, condominium, townhouse, or duplex. 3. Agreement of Sale: A legally binding contract between the seller and the buyer, outlining the terms and conditions of the property sale. 4. Assumption of Existing Mortgage: The buyer agrees to take on the seller's existing mortgage loan, assuming the responsibility for making payments and complying with the terms set by the lender. 5. Deed of Trust: A legal document that serves as a security interest in real property, similar to a mortgage. It provides the lender with the right to foreclose on the property if the borrower defaults on the loan. Types of Travis Texas General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust: 1. Residential Property with Assumption of Mortgage: This type of agreement involves the buyer assuming the existing mortgage on the property, usually by qualifying with the lender and paying any necessary fees or deposits. 2. Residential Property with Assumption of Deed of Trust: In this case, the buyer assumes the existing deed of trust, which functions similarly to a mortgage, and becomes responsible for making payments and complying with its terms. 3. Residential Property with Assumption of Mortgage and Deed of Trust: This type of agreement combines both the assumption of an existing mortgage and an existing deed of trust, depending on the specifics and contractual obligations of the property sale. It's important to consult a real estate attorney or professional to ensure that the Travis Texas General Form of Agreement of Sale of Residential Property with Assumption of Existing Mortgage or Deed of Trust is tailored to your specific situation and complies with all relevant laws and regulations.
