Finance
In South Dakota, a mortgage 'assumption' allows:
AThe lender to increase the interest rate on an existing mortgage
BA buyer to take over the seller's existing mortgage, subject to lender approval if required✓ Correct
CThe borrower to assume additional debt using the property as collateral
DA co-borrower to be added to an existing mortgage
Explanation
A mortgage assumption allows the buyer to take over the seller's existing mortgage with its existing interest rate and terms. Some mortgages are 'assumable' without lender approval; others require lender qualification of the assuming buyer. FHA and VA loans are generally assumable with lender approval.
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