Escrow & Title
In Alaska, a purchaser buys property with an existing mortgage they assume. If the seller is released from the debt by the lender, this is called:
ASubstitution of collateral
BNovation✓ Correct
CAssignment of mortgage
DSubordination
Explanation
Novation occurs when the lender substitutes a new party (the buyer) for the original borrower (the seller), releasing the original borrower from all obligation under the note.
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