Finance
In Wyoming, a mortgage loan assumption means:
AThe new buyer takes over the existing loan and the original borrower is automatically released
BThe new buyer takes over the existing loan, but the original borrower may remain liable unless novation occurs✓ Correct
CBoth buyer and seller jointly own the loan
DThe lender must approve all assumptions at the original interest rate
Explanation
In a loan assumption, the buyer takes over the existing mortgage. Unless the lender executes a novation releasing the original borrower, the seller may remain secondarily liable if the buyer defaults.
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