Assumption of mortgage

Assumption of mortgage,

Definition of Assumption of mortgage:

  1. Agreement under which the buyer of a property takes over the sellers liability for payment of installments (on the existing mortgage on the property), usually to save the closing costs or the higher interest rates of a new mortgage. The original mortgagor (seller of the property) remains secondarily liable for payment of the mortgage unless released in writing by the mortgagee (lender).

Meaning of Assumption of mortgage & Assumption of mortgage Definition