Mortgage Assumption Agreement Template

This Mortgage Assumption Agreement (the “Agreement”) is entered into as of [Effective Date] by and among:

Original Borrower (“Seller/Transferor”): [Name], address: [Address].
Assuming Borrower (“Buyer/Transferee”): [Name], address: [Address].
Lender (“Mortgagee”): [Lender Name], address: [Address] (for consent/acknowledgment, if applicable).

The parties may be referred to individually as a “Party” and collectively as the “Parties.”

1. Background

1.1 Property. The property is located at [Property Address], with legal description attached as Exhibit A (the “Property”).
1.2 Existing Mortgage. The Property is subject to a mortgage/loan dated [Original Loan Date] with Lender (the “Loan”).
1.3 Purpose. The Parties intend that the Assuming Borrower will assume the Loan under the terms stated below, subject to Lender approval.

2. Loan Details Being Assumed

2.1 Original Borrower Name(s): [Name(s)].
2.2 Loan/Account Number (Optional): [Number].
2.3 Current Principal Balance (Approx.). $[Amount] as of [Date].
2.4 Interest Rate. []% per year.
2.5 Monthly Payment (Approx.). $[Amount], due on the [] day of each month.
2.6 Maturity Date. [Date].
2.7 Escrow (If Any). ☐ Yes ☐ No. If yes: taxes/insurance escrowed: [Details].

3. Assumption and Obligations

3.1 Assumption. Assuming Borrower agrees to assume and pay the Loan according to its terms from and after [Assumption Effective Date].
3.2 Performance. Assuming Borrower will perform all borrower obligations, including maintaining insurance and paying taxes/assessments as required by the Loan documents.
3.3 Arrears (If Any). Any past-due amounts as of the Effective Date will be paid by: ☐ Original Borrower ☐ Assuming Borrower ☐ Split: [Details].

4. Liability and Release

4.1 Release of Original Borrower (Select One):
☐ Upon Lender’s written approval, Original Borrower is released from future liability for the Loan.
☐ Original Borrower is not released and remains liable as required by the Loan documents and Lender policy.
4.2 Indemnity (Optional). Assuming Borrower will indemnify Original Borrower for losses arising from Assuming Borrower’s failure to pay after the Effective Date.

5. Lender Consent

5.1 This Agreement is ☐ effective upon signing by all Parties ☐ conditioned on written Lender consent.
5.2 If Lender requires additional documents, the Parties will cooperate to complete them.

6. Insurance and Title

6.1 Assuming Borrower will maintain required insurance and update the policy to reflect the assumption and lender requirements.
6.2 Title/transfer documents will be handled as follows: [Deed type, closing/recording details].

7. Defaults

7.1 Default will be determined under the Loan documents.
7.2 Remedies remain those available to Lender and as allowed by law.

8. Governing Law

8.1 This Agreement is governed by the laws of [State/Country].

9. Notices

9.1 Notices must be in writing and delivered to the addresses above.

10. Entire Agreement

10.1 This Agreement, together with the Loan documents, is the entire agreement regarding the assumption.

Signatures

By signing below, the Parties agree to this Mortgage Assumption Agreement as of the Effective Date.

Original Borrower: [Full Name]
Date: [Date]
Signature: ___________________________

Assuming Borrower: [Full Name]
Date: [Date]
Signature: ___________________________

Lender (Consent/Acknowledgment, if applicable): [Lender Representative Name]
Title: [Title]
Date: [Date]
Signature: ___________________________

Witnesses (If Required)

Witness #1 Name: [Name]
Date: [Date]
Signature: ___________________________

Witness #2 Name: [Name]
Date: [Date]
Signature: ___________________________

Notary / Notarization (If Required)

State of [State]
County of [County]

On [Date], before me, [Notary Name], personally appeared [Original Borrower Name] and [Assuming Borrower Name], known to me (or satisfactorily proven) to be the persons whose names are subscribed to this Agreement, and acknowledged that they executed it for the purposes stated.

Notary Public Signature: _______________________
My Commission Expires: _______________________
Notary Seal (if applicable): ___________________