Posted by doug,KY on March 27, 2000 at 12:02:50:
A mortgage is assumable if it does not contain a “Due on Sale Clause”. There are two ways of buying using the assumable mortgage. First, the buyer can assume the mortgage formally, which means he agrees to be responsible for the loan to the lender. Or the buyer can take title “subject to” the existing mortgage, which means the buyer acknowledges that payments are due to the lender but he is not responsible for the loan. This is called a simple or imformally assumption.
An un-assumable mortgage only deals with the existing finacing only. Buying property creatively is finding motivated sellers and creating solutions to solve their problems and at the same time helping you. Assuming a loan just gives the buyer and seller more flexibilty.
A “lot” is a section of land that has been surveyed, landmarked, and has a known deminsion. A Developer normally buys a parcel of land and subdivides the parcel into “lots” to build on. Lots can be vacant or they can have a building on them. The legal describtion will most always reference the Lot # if the land has been subdivided.