assumption of mortgage

(redirected from assumable loan)
Also found in: Financial, Wikipedia.

assumption of mortgage

The purchaser of property may promise the vendor that he will assume the obligation to keep up the mortgage payments. In such event, the mortgagee may generally enforce this promise against the purchaser, and in addition to his right to foreclose in the event of nonpayment the mortgagee may also recover from the purchaser (or from the vendor) any deficiency between the proceeds of the foreclosure sale and the amount still owing on the mortgage. Also see subject to mortgage.
Mentioned in ?
References in periodicals archive ?
No fee was charged by the lender and this non-recourse, assumable loan also features a flexible, sliding scale prepayment in the last five years of the 10-year term.