Assumption means anything which is bound to happen or is true. However, this is done without any evidence/proof. It also means taking over any responsibility, duty, or power.
Assumption means taking on any new position, duty, power, or responsibility. It also means perceiving and forecasting something which will take place, or is certain to take place, without proof. It could mean any taken for granted fact/statement. It also means taking over the debts of another individual or entity.
Assumption clauses are present in mortgage contracts across the real estate industry. These enable home sellers to pass on the responsibilities of any current mortgages to property buyers. New home buyers take on the repayment responsibilities for existing mortgages along with property ownership as well. Assumable mortgages are thus specific deals, where existing home loans of sellers are taken over by new buyers and owners, without needing to apply for any new home loan. This means that the repayment period, interest, remaining loan amount, and other terms and conditions remain the same, although the debt repayment responsibility shifts to the new home buyer/owner.
