real estate

Assumption of mortgage

The conveyance of property title to a grantee in exchange for the grantee accepting obligation for the payment of an existing note backed by a mortgage on the property. If the mortgage is foreclosed and the property is sold for less than the amount owed, the grantee/purchaser who accepted and committed to pay the mortgage obligation is personally accountable for the deficit. The lender must approve the transfer of obligation for payment of the note before a seller can be relieved of liability under the current mortgage.