An assumed mortgage, also known as an assumption of mortgage, occurs when a homebuyer takes over the seller’s existing mortgage, maintaining the original terms and conditions of the loan.
Assumption of mortgage is a real estate transaction where the buyer accepts liability for the existing mortgage debt on the property, often facilitating a smoother and potentially cheaper transfer of ownership compared to obtaining a new loan.
Financing is the process of borrowing money to purchase property. Various methods exist to acquire the necessary funds, which can involve different types of loans and arrangements.
Mortgage assumption is the process by which a homebuyer takes over the seller's existing mortgage, continuing to make payments under the original terms. This can potentially offer favorable interest rates and terms compared to current market rates.
Mortgage relief involves the alleviation or settlement of mortgage debt. This can occur through the assumption of mortgage by another party or the repayment of debt. In tax-free exchanges, mortgage relief can be considered as boot received and could have tax implications.
A Reduction Certificate is a document issued by a mortgage lender, acknowledging the sum due on the mortgage loan, and is crucial when mortgaged property is being sold and the buyer assumes the existing debt.
Acquiring property with an existing mortgage, but the buyer does not become personally liable for the debt. Contrasted with assumption of mortgage.
