Most residential mortgage loans are not assumable, with the exception of certain federally backed FHA, VA, and USDA loans. If the Buyer does want to assume the loan, there can be cost savings and potentially a below market interest rate. However, the seller must be sure that it is released by the lender from all future note obligations should the buyer default on subsequent payments, and to cause this obligation to be removed as a credit exception from seller’s personal credit file.
Mitch
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