Finance
A North Dakota buyer assumes the seller's existing mortgage. The original borrower's liability under the assumed mortgage is:
AAutomatically released upon closing
BEliminated only if the lender provides a novation releasing the original borrower✓ Correct
CAlways retained regardless of the buyer's creditworthiness
DTransferred to the title company
Explanation
When a buyer assumes an existing mortgage, the original borrower typically remains secondarily liable unless the lender agrees to a novation (substitution of the new borrower) releasing the original borrower from further liability.
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