By an assumption of mortgage, we mean any such mortgage, where the buyer assumes the mortgage of the seller of a property.
This type of mortgage is basically a specific financing mechanism where the seller has an outstanding mortgage and this is assumed or taken over by the property buyer, keeping all the loan terms and conditions, interest rates, and other aspects intact. There are various assumed mortgages which are seen in the home financing space. This often works out to be a favorable deal for both parties. Sellers can get some profits over and above getting the mortgage responsibility transferred to someone else. Buyers can avoid the rigmarole of applying for a fresh mortgage as well.
These deals are often seen in the mainstream home-buying and real estate sector. They are often seen in case of resale property transactions. In fact, sometimes, freshly built property which is owned by an individual with a mortgage, is transferred to another person.
