Assumption and Release Agreement Fannie Mae
2023年9月4日
An assumption and release agreement is a legal document that allows a borrower to transfer the ownership of their property to a new buyer, while also releasing themselves from any liability associated with the property. Essentially, it is a way for a homeowner to sell their property without having to pay off the entire mortgage.
Fannie Mae, the Federal National Mortgage Association, is one of the largest mortgage investors in the United States. If you have a mortgage with Fannie Mae, you may need to use an assumption and release agreement if you want to sell your property.
When you sell your property, the new buyer can assume your existing mortgage if they qualify. This means that they take over your mortgage payments and become responsible for the remainder of the loan. In order to do this, the new buyer will need to go through a qualification process with Fannie Mae and meet their credit and income requirements.
Once the new buyer has been approved, you can sign the assumption and release agreement. This document transfers the ownership of the property to the new buyer and releases you from any liability associated with the mortgage.
It is important to note that not all mortgages are assumable. Some mortgages, such as FHA and VA loans, are assumable with the approval of the lender. Other mortgages, such as conventional loans, may or may not be assumable depending on the terms of the loan and the lender`s policies.
If you are planning to sell your property and have a mortgage with Fannie Mae, it is important to understand the terms of your loan and whether or not it is assumable. If your loan is assumable, you can use an assumption and release agreement to transfer ownership of your property and release yourself from any further liability.
In conclusion, an assumption and release agreement is an important legal document that allows homeowners to sell their property without having to pay off their entire mortgage. If you have a mortgage with Fannie Mae, you may need to use an assumption and release agreement when selling your property. It is important to understand the terms of your loan and whether or not it is assumable in order to properly navigate the selling process.