Finance
What does 'assumption of mortgage' mean in an Oregon real estate transaction?
AThe buyer takes out a new mortgage to pay off the seller's existing loan
BThe buyer takes over the seller's existing mortgage, becoming personally liable for the debt✓ Correct
CThe lender agrees to transfer the mortgage to a different property
DThe seller guarantees the buyer's mortgage payments
Explanation
An assumption occurs when the buyer agrees to take over the seller's existing mortgage, making future payments, and the lender (if qualifying assumption) releases the seller from liability. Assumable loans can benefit buyers when existing rates are lower than current market rates.
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