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Assumption Agreement of Deed of Trust or Mortgage

Legal Scales When mortgaged property is conveyed to another person, an assumption agreement may be used which provides that the new owner assumes the mortgage and the mortgage holder agrees to the assumption.

FAQ

What is an assumption agreement? An assumption agreement is used by a party when transferring an interest in property to another. Under the assumption agreement, the new owner of the property agrees to assume or take over the existing mortgage on the property and the mortgage holder agrees to permit the substitution of parties.

What is a "deed of trust"? A deed of trust is an instrument used to secure a debt in which a debtor conveys the legal ownership of real property to a trustee to be held in trust for the benefit of the creditor or to be sold upon the debtor's default to pay the debt.

What is a "mortgage"? A mortgage is a lien against property that is granted by a debtor to a creditor to secure an obligation (as a debt) and that is extinguished upon payment or performance according to stipulated terms.

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