Cash payment plus assumption of existing mortgage

Cash payment plus assumption of existing mortgage

Assumption of existing mortgages the way of conveying the dues of the existing mortgages to the purchaser via a legal document that holds all the information of the cash payment plus assumption of existing mortgages. To make it more precise, If the purchaser is about to buy a property for about 2000$ and the seller already has a mortgage due of 1200$, the buyer pays 700$ for the equality of the mortgage loan. Thus, this gives a clear picture of the assumption of mortgages. It is also documented for the record of both the buyer and the seller with their knowledge of it.

This legal advice is documented for the benefit of the seller to make no dues to the mortgages. This document clearly states the date when the payments are made to the seller through the purchaser. It also has a clean record of the mortgages on the ongoing loan of that particular property, situated in the county or the state. The seller and the purchaser, both signs it only after the document is filled with the cash payment details and the mortgages due details from both the parties. This document needs to be preserved until any further steps by the purchaser and as a record to the taxation and revenue departments of that particular county or state. This is also a record to state that all the payments are paid to the seller, on or before the particular date that is fixed by the seller.

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Cash payment plus assumption of existing mortgage.

Purchase price, subject to prorations, shall be paid by payment of $_____(which includes earnest money previously paid) in cash, cashier’s or certified check, and the balance by the purchaser taking title (subject to and assuming as of the date of closing and agreeing to pay the indebtedness secured by the existing mortgage or trust deed dated _________, recorded or registered in _________ County, _________, as Document No. _________, and evidenced by a note currently held by _________ having an unpaid balance as of this date of $_____ and bearing _____% interest per annum on unpaid principal, provided that note is not in default on date of closing. The note is payable in _________ installments per year (including principal, interest, tax and insurance deposits, and loan guarantee insurance) of $_____ each, final payment being due on _________[date]. The parties agree to sign a written assumption agreement with and in a form satisfactory to the legal holder of the note, assumption expense to be paid by the purchaser not to exceed $_____, and balance, if any, to be paid by seller, the seller also to remain obligated to the legal holder if the legal holder so demands. The amount of cash due to seller shall be adjusted depending on the actual principal balance due on the note at time of closing.