This form is an Assumption Agreement. The form provides that the grantee will assume a lien on property described in the agreement. The assumption will become effective on the date provided in the agreement.
Loan Assumption Agreement Form In Harris
Category:
State:
Multi-State
County:
Harris
Control #:
US-00424
Format:
Word;
Rich Text
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FAQ
A debt assumption involves two simultaneous transactions; the first transaction cancels the original debtor's obligation, and the second transaction creates a new debt contract between the creditor and the new debtor, or assumer.
An assignment and assumption of lease is a legal real estate document that allows one party to transfer rights and obligations of a lease to another party. Often used in real estate transactions and mortgage lending, the assignment and assumption of lease agreement requires the landlord to consent to move forward.
An assumption agreement is a contractual clause in which one party agrees to take on the obligations and responsibilities of another party as specified in the original agreement.
In an assumption, the assuming party is personally liable for the debt, but where the property is purchased subject to a mortgage, only the property is at stake. Cf. Balfour v. Chew, 4 Mart.
By assuming the previous owner's remaining debt, the buyer can avoid obtaining their own mortgage, which may come with higher interest rates. Different types of loans can qualify as assumable mortgages, though there are some special considerations to keep in mind.
A debt agreement is one of two agreement options available. A debt agreement, also known as a Part IX (9), is a legally binding agreement between you and your creditors. A debt agreement can be a flexible way to come to an arrangement to settle debts without becoming bankrupt.
Assumption means that an authorized insurance company in the private market takes on or assumes policies currently written by Citizens. A private insurance company must be approved by the Office of Insurance Regulation before it can assume Citizens policies. Any active Citizens policy may be selected for assumption.
The purpose of an assumption agreement is to ensure the seller is freed from their obligations, while the buyer agrees to take on these obligations. Legally, the seller could still be held liable if they don't have a proper assumption agreement in place that absolves them of those responsibilities.
This means that the buyer can take over the exact terms of the seller's mortgage, including the remaining balance, repayment schedule, and interest rate. Mortgage assumptions are especially attractive when the market's prevailing interest rates are high relative to the rate on the existing mortgage.