Escrow & Title
When a buyer 'assumes' an existing mortgage in Arizona, the buyer:
ATakes on personal liability for the debt, but the seller is automatically released
BTakes on personal liability for the debt, and the seller may also remain liable unless released by the lender✓ Correct
CTakes over the mortgage without any personal liability
DMust obtain new financing in any case
Explanation
When a buyer assumes a mortgage, they become personally liable for the debt. The original borrower (seller) typically remains secondarily liable unless the lender formally releases them through a novation or assumption agreement.
Related Arizona Escrow & Title Questions
- In Arizona, the document that evidences a debt and is secured by a deed of trust is called a:
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- A quiet title action in Arizona is a court proceeding used to:
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