assumption of mortgage |
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Definition
Agreement under which the buyer of a property takes over the seller's liability for payment of installments (on the existing mortgage on the property), usually to save the closing costs or the higher interest rates of a new mortgage. The original mortgagor (seller of the property) remains secondarily liable for payment of the mortgage unless released in writing by the mortgagee (lender).
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assumption of mortgage is in the Banking, Commerce & Finance and Real Estate & Buildings subjects.
assumption of mortgage appears in the definition of the following term: assumption fee
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