Finance
A buyer in Arizona assumes an existing mortgage. If the assumption is 'qualified,' this means:
AThe original borrower is automatically released from liability
BThe new buyer has been approved by the lender to take over the loan✓ Correct
CThe assumption requires no lender involvement
DThe buyer qualifies for a new loan instead
Explanation
A qualified assumption means the new buyer has been reviewed and approved by the lender. A simple assumption requires no lender approval, and a novation releases the original borrower.
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