Finance
What is 'assumption of mortgage' and when might it occur in Kansas?
AThe buyer takes out a new mortgage to pay off the seller's existing loan
BThe buyer takes over the seller's existing mortgage with the lender's approval, subject to the original loan terms✓ Correct
CThe seller keeps the mortgage after selling the property
DA lender merges two mortgage loans into one
Explanation
Mortgage assumption occurs when a buyer takes over the seller's existing mortgage. Kansas conventional loans typically have due-on-sale clauses preventing assumption, but FHA and VA loans may be assumable with lender approval.
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