assumable mortgage

A mortgage loan that can be 'taken over' (assumed) by the buyer when a home is sold. An assumption of a mortgage is a transaction in which the buyer of real property takes over the seller's existing mortgage.

Terms of assumption may require that the buyer 'qualify' for the mortgage before the assumption can be granted.

The seller remains liable for the loan amount, unless released by the lender from the obligation.

In South Africa, a mortgage bond may not be assumed without the lender's consent.

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