Finance
In Kansas, what is a 'release of liability' in connection with a mortgage assumption?
AThe lender's statement releasing the property from the mortgage lien
BThe lender's formal release of the original borrower from personal liability on the mortgage debt when a new buyer assumes the loan✓ Correct
CThe borrower's release of their rights under the mortgage
DThe VA's release of the veteran's entitlement
Explanation
A release of liability (novation) formally releases the original borrower from personal liability on the mortgage debt when the lender accepts a qualified buyer's assumption — without it, the original borrower remains secondarily liable.
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