Finance
Iowa's assumption of mortgage means:
AThe seller's obligation is completely released when the buyer takes over
BThe buyer takes over the seller's existing mortgage, subject to lender approval, and becomes personally liable✓ Correct
CThe lender automatically approves all mortgage transfers
DOnly FHA loans can be assumed in Iowa
Explanation
Assuming a mortgage means the buyer takes over the seller's existing loan obligations and becomes personally liable for the debt. The lender typically must approve the assumption. If approved, the seller may or may not be released from liability depending on the lender's novation agreement.
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