Assumption
Assumption is a legal document and agreement between the buyer and seller. The buyer takers over the responsibility and obligations of the existing mortgage, from the seller or builder.
The original mortgagor should always obtain a written release from further liability if they desire to be fully released under the assumption.
Failure to obtain such a release renders the original mortgagor liable if the person assuming the mortgage fails to make the monthly payments.
Assuming a loan can save money, as the buyer is not required to may most of
the closing costs.
Click for more mortgage glossary terms relating to remortgaging.