FinanceIntermediateDelaware Exam
What is 'mortgage assumption' in Delaware?
AThe lender takes over the property after foreclosure
BA buyer takes over the seller's existing mortgage obligation with lender approvalCorrect
CThe seller assumes personal liability for the buyer's new mortgage
DA co-signer assumes part of the mortgage obligation
Why A buyer takes over the seller's existing mortgage obligation with lender approval Is Correct
Answer B: A buyer takes over the seller's existing mortgage obligation with lender approval
Mortgage assumption occurs when a buyer takes over the seller's existing mortgage loan (with the lender's approval, unless it is an assumable loan), agreeing to be personally liable for the debt.
Exam Tip: Finance
Finance questions often involve calculations. Master the T-bar method, understand the difference between conventional and government-backed loans, and know key ratios like LTV and DTI.
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