Real estate, word of the day assumption. So what we’re going to do is we’re going to use that word in a sentence. We’re going to define it. And then we’ll talk about it super quick with Shana Acquisto, luxury real estate broker. So an assumption is. The term applied when a buyer assumes the seller’s mortgage, OK, And so what would take place? And we’ll use this one in a word, here is the new lender.
Completed the assumption of the mortgage. OK, so what would happen is it would get assumed moving from one party to the other, taking on the liability and the know as it currently was written and its assumed transferring from one party to the next. OK, also see similar words like assumable mortgage assignment and all those different things. Qualifying assumable are going to be different terms as well, all related to the mortgage and that’s just a little discussion about it. Some loans are assumable, some loans are not.
Sometimes it makes sense for it to be assumed based on whatever happens. But the other party has to put down money and you have to make it right. And there’s like maybe there’s a second. There’s a lot of different things to kind of consider there. And it depends on the economic environment, if that’s the right thing to do or not.
