Escrow & Title
In Vermont, when a buyer assumes an existing mortgage, they become:
ASolely liable for the debt; the original borrower is automatically released
BPersonally liable for the debt, though the original borrower may remain secondarily liable unless the lender releases them✓ Correct
COnly liable if the original borrower defaults
DNot liable because the seller retains responsibility
Explanation
When a buyer assumes a mortgage in Vermont, they take on personal liability for the debt. However, unless the lender formally releases the original borrower via a novation, the seller may remain secondarily liable if the assuming buyer defaults.
Related Vermont Escrow & Title Questions
- A title examination in Vermont involves reviewing:
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- Vermont's 'closing disclosure' (CD) must be provided to the buyer at least:
- A Vermont lender's title insurance policy protects:
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