assumption of mortgage


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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.
McGraw-Hill Dictionary of Architecture and Construction. Copyright © 2003 by McGraw-Hill Companies, Inc.
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Assumption of Mortgage: Assumption by a purchaser of the primary liability for payment of an existing mortgage or deed of trust.
* Assumption of mortgage in the amount of $2,960,000 for a six-story walk-up apartment building containing 16 units with 1 store, located on St.