Assumption Agreement

Keep in mind that the average loan assumption takes anywhere from 45-90 days to complete. The more issues there are with underwriting, the longer you'll have to wait to finalize your agreement.

The primary borrower and all co-borrowers sign the mortgage or trust deed. State law dictates whether a mortgage or a trust deed is recorded, but some states permit either document to be used, says Private Money Lending.

The seller may also be required to sign the assumption agreement and the terms may release the seller from responsibility. The lender usually requires a credit history from the buyer before approving the assumption and the payment of assumption fee(s).

An assumable mortgage allows a buyer to take over the seller's mortgage. Once the assumption is complete, you take over the payments on a monthly basis, and the person you assume the loan from is released from further liability. If you assume someone's mortgage, you're agreeing to take on their debt.

An assumable mortgage allows a buyer to take over the seller's mortgage. Once the assumption is complete, you take over the payments on a monthly basis, and the person you assume the loan from is released from further liability. If you assume someone's mortgage, you're agreeing to take on their debt.

Cost. This is determined by the loan program and (in some cases) where the property's located. The average assumption fees range from $562 to $1,062. Additional 3rd party fees may apply.

A fee that the buyer of a property with an assumable mortgage pays to the lender for the ability to take over the mortgage.

1) Find Out If the Loan is Assumable You can check the loan documents to see whether assumptions are permitted. The loan document will typically state whether or not the loan is assumable under the "assumption clause." The terms may also appear under the "due on sale clause" if loan assumption isn't permitted.