Finance
A buyer assumes a seller's existing mortgage. This means the buyer:
ATakes title subject to the mortgage but is not personally liable
BBecomes personally liable for the mortgage debt and takes over the payments✓ Correct
CMust refinance the property within 90 days
DReceives a new mortgage from the seller's lender automatically
Explanation
When a buyer assumes a mortgage, the buyer becomes personally liable for the existing loan and takes over the payments. The original borrower may remain liable unless the lender formally releases them (novation).
Related Arkansas Finance Questions
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- Which type of mortgage gives the lender a share of the property's appreciation or income in exchange for a below-market interest rate?
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