Illinois Assumption Agreement of Mortgage and Release of Original Mortgagors
Overview of this form
The Assumption Agreement of Mortgage and Release of Original Mortgagors is a legal document that allows the new purchasers of a property to assume the existing mortgage debt from the original mortgagors. This form is crucial for lenders and home buyers, as it releases the original mortgagors from future liability on the loan, ensuring that the new owner takes responsibility for the mortgage obligations. Unlike simple transfer agreements, this form specifically addresses the assumption of debt and the associated legal considerations.
Key parts of this document
- Identification of the lender, original mortgagors, and new purchasers.
- Statement of the mortgage debt being assumed by the new purchasers.
- Details regarding the property, including the address and legal description.
- Agreement on payment terms, such as interest rate and monthly payment amounts.
- Notarization section for validating the agreement.
When to use this document
This form is used in situations where a property has been sold and the buyers wish to take over the mortgage from the previous owners. It is essential for ensuring that the lender acknowledges this transfer and releases the original mortgagors from any responsibility for the mortgage debt. Common scenarios include home sales where the buyers intend to assume the loan and when buyers want to avoid the process of refinancing the mortgage.
Who should use this form
- New purchasers who are assuming an existing mortgage.
- Original mortgagors looking to be released from their mortgage obligations.
- Lenders who are involved in the mortgage transaction.
- Real estate professionals facilitating the sale of the property.
How to complete this form
- Identify all parties involved: lenders, original mortgagors, and new purchasers.
- Specify the property details, including the address and legal description.
- Enter the current outstanding mortgage amount and the agreed interest rate.
- Fill in the monthly payment details, including principal, interest, taxes, and insurance.
- Ensure the document is signed and notarized by all relevant parties.
Is notarization required?
Notarization is required for this form to take effect. Our online notarization service, powered by Notarize, lets you verify and sign documents remotely through an encrypted video session, available 24/7.
Common mistakes to avoid
- Failing to accurately fill in all required information, which may void the agreement.
- Not obtaining notarization for the document, which is crucial for legal validity.
- Not understanding the implications of assuming a mortgage, leading to financial liability.
Benefits of completing this form online
- Convenience of immediate access and download at any time.
- Editability of the form to tailor it to specific needs before printing.
- Reliability, as the forms are prepared by licensed attorneys to ensure legal compliance.
Form popularity
FAQ
Related Content. Also called an assignment and assumption. An agreement in which one party transfers its contractual rights and obligations to another party.
An assignment and assumption agreement is used after a contract is signed, in order to transfer one of the contracting party's rights and obligations to a third party who was not originally a party to the contract.
1 : a taking to or upon oneself the assumption of a new position. 2 : the act of laying claim to or taking possession of something the assumption of power. 3a : an assuming that something is true a mistaken assumption.
An assignment and assumption agreement is used after a contract is signed, in order to transfer one of the contracting party's rights and obligations to a third party who was not originally a party to the contract.The assignor must agree to assign their rights and duties under the contract to the assignee.
Assignment is the transfer of all rights to the buyer (assignee) from the seller (assignor).Assumption is like an Assignment except the seller is released from all liability under the terms of the lease. This is rare and it almost never happens.
Assignment is a legal term whereby an individual, the assignor, transfers rights, property, or other benefits to another known as the assignee. This concept is used in both contract and property law. The term can refer to either the act of transfer or the rights/property/benefits being transferred.
What is a mortgage assumption agreement? It's actually pretty self-explanatory. A person who assumes a mortgage takes over a payment from the previous homeowner. Basically, the agreement shifts the financial responsibility of the loan to a different borrower.
An assignment of contract occurs when one party to an existing contract (the "assignor") hands off the contract's obligations and benefits to another party (the "assignee"). Ideally, the assignor wants the assignee to step into his shoes and assume all of his contractual obligations and rights.
