Common Contracts
1 similar Loan Assumption Agreement contracts
Loan assumption agreement pdfLoan Assumption Agreement • June 6th, 2023
A loan assumption agreement is an agreement between a lender, original borrower, and a new borrower, where the new borrower agrees to assume responsibility for the debt owed by original borrower. These agreements are commonly seen in mortgages and real estate.The agreement is made between the original lender and a new borrower, who will take over mortgage payments on the property. This allows for a smooth transition with no interruption in mortgage payments to be due, as well as avoiding penalties that may have been incurred by the borrower if they were to default or prepay their loan through refinancing or another means.The original lender typically requires an appraisal before approving this type of loan transfer, which ensures that there is enough equity in the property for both parties involved. In addition, lenders will often require some kind of documentation from those seeking to assume responsibility for paying off the mortgage so they can confirm income levels and creditworthi
