Finance
Which of the following describes 'assumption of mortgage'?
AThe buyer takes out a new loan to pay off the seller's mortgage
BThe buyer takes over the seller's existing mortgage obligation✓ Correct
CThe lender transfers the mortgage to a new servicer
DThe seller pays off the mortgage at closing
Explanation
Assumption of mortgage occurs when the buyer takes over the seller's existing mortgage, including its terms, interest rate, and balance. The buyer becomes personally responsible for the debt.
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