What is required for lender consent?

Lenders typically require an application, credit and income verification, and an executed Assumption Agreement. Some lenders charge an assumption fee and may require underwriting similar to a new loan; the lender's servicer will specify documentation and timelines.

Can an assumption be completed without lender approval?

No, most mortgages contain a due-on-sale clause that permits the lender to accelerate without explicit consent. Relying on an unapproved assumption risks acceleration, foreclosure, or repudiation of the transfer.

Does the original borrower remain liable after assumption?

Only if the lender does not issue a release. An assumption can leave the original borrower secondarily liable unless the lender executes a novation or explicit release of liability in writing.

Is an Assumption Agreement valid if signed electronically?

Yes, electronic signatures are valid under the ESIGN Act (15 U.S.C. ch. 96) and by UETA in adopting states, provided intent, consent, attribution, and reliable record retention are met.

Are notary or witness steps required?

Many counties require notarized acknowledgments for recording. Remote online notarization (RON) is permitted in most states with identity proofing and audio-video recording requirements; verify state notary rules before using RON.

What if the county rejects recording?

Common reasons include incomplete legal description, missing acknowledgments, or fee errors. Correct the defect, re-execute if necessary, and resubmit with proper fee to avoid title or lien priority issues.

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Assumption Agreement of Mortgage

Assumption Agreement of Mortgage

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Assumption Agreement of Mortgage and Release of Original Mortgagors

Prepared by U.S. Legal Forms, Inc.

STATE OF MASSACHUSETTS

Assumption Agreement of Mortgage and Release of Original Mortgagors

Control Number – MA–ED1014

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These materials were developed by U.S. Legal Forms, Inc. based upon statutes and forms for the State of Massachusetts. All Information and Forms are subject to this Disclaimer: All forms in this package are provided without any warranty, express or implied, as to their legal effect and completeness. Please use at your own risk. If you have a serious legal problem we suggest that you consult an attorney. U.S. Legal Forms, Inc. does not provide legal advice. The products offered by U.S. Legal Forms (USLF) are not a substitute for the advice of an attorney.

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Assumption of Mortgage

Prepared By and After Recording Return to:

Send Tax Statements to Grantee Name and Address:

Reception Number of Deed of Trust:

ASSUMPTION AGREEMENT

WHEREAS hereinafter referred to as “Lender,” loaned or , a corporation, hereinafter referred to as “Borrower(s),” whether one or more, the sum of Dollars ($ ), as evidenced by Note and Deed of Trust or Mortgage dated , Reception No. , recorded in Book at Page of the Public Records of the County Recorder, State of Massachusetts.

WHEREAS, said Borrower(s) has/have sold said property to the undersigned Purchaser(s) and said Purchaser(s) desire to assume and agree to pay said indebtedness and perform all the obligations of Borrower(s), and said Borrower(s) desire to be released from said obligations, and Lender is willing to accept said assumption and release said original Borrower(s).

THEREFORE, for and in consideration of the premises and other good and valuable considerations, the undersigned Purchaser(s) hereby assume and agree to pay the indebtedness evidenced by said Note and Deed of Trust Mortgage and perform all of the obligations provided therein, it being agreed and understand that as of this date said indebtedness is: Dollars ($ ), and that the interest rate shall be % per annum, and that the monthly payments shall be made beginning the day of , 20 , in the sum of as follows:

Principal and interest $

Accrued taxes $

Accrued hazard insurance $

FHA M.I. or P.M.I. $

Total $

per month, and that in all other aspects, all terms and conditions of said note shall remain in full force and effect, and Lender hereby releases and discharges said original Borrower(s) upon their personal obligation upon said indebtedness.

This assumption by said Purchaser(s), if more than one, is joint and several and shall bind them, their heirs, personal representatives, successors and assigns.

IN WITNESS WHEREOF, the parties have hereunto executed this instrument, this day of , 20 .

Borrower Signature

Witness

Address

Borrower Signature

Witness

Address

Borrower Signature

Witness

Address

Borrower Signature

Witness

Address

Purchaser Signature

Witness

Address

Purchaser Signature

Witness

Address

Purchaser Signature

Witness

Address

Purchaser Signature

Witness

Address

Lender Signature

Witness

Address

Lender Signature

Witness

Address

Acknowledgment of Individual – Borrower(s)

State of Massachusetts

County of

On the day of , 20, personally appeared before me , the signer of the foregoing instrument, who duly acknowledged to me that he/she executed the same.

(Seal)

My commission expires:

Type or Print Name

Residing at:

Acknowledgment of Corporation – Borrower

State of Massachusetts

County of

On the day of , 20, personally appeared before me , who being duly sworn, did say that he/she is the of , a corporation, and that said instrument was signed on behalf of said corporation by authority of a resolution of its Board of Directors, and said acknowledged to me that said corporation executed the same.

(Seal)

My commission expires:

Type or Print Name

Residing at:

Acknowledgment of Individual – Purchaser(s)

State of Massachusetts

County of

On the day of , 20, personally appeared before me , the signer of the foregoing instrument, who duly acknowledged to me that he/she executed the same.

(Seal)

My commission expires:

Type or Print Name

Residing at:

Acknowledgment of Corporation – Purchaser

State of Massachusetts

County of

On the day of , 20, personally appeared before me , who being duly sworn, did say that he/she is the of , a corporation, and that said instrument was signed on behalf of said corporation by authority of a resolution of its Board of Directors, and said acknowledged to me that said corporation executed the same.

(Seal)

My commission expires:

Type or Print Name

Residing at:

Acknowledgment of Individual – Lender(s)

State of Massachusetts

County of

On the day of , 20, personally appeared before me , the signer of the foregoing instrument, who duly acknowledged to me that he/she executed the same.

(Seal)

My commission expires:

Type or Print Name

Residing at:

Acknowledgment of Corporation – Lender

State of Massachusetts

County of

On the day of , 20, personally appeared before me , who being duly sworn, did say that he/she is the of , a corporation, and that said instrument was signed on behalf of said corporation by authority of a resolution of its Board of Directors, and said acknowledged to me that said corporation executed the same.

(Seal)

My commission expires:

Type or Print Name

Residing at:

What an Assumption Agreement of Mortgage Is and when it applies

An Assumption Agreement of Mortgage is a written contract by which a buyer (assumer) accepts the obligations of an existing mortgage from the current borrower. It documents lender consent or the lender's release conditions, the parties' identities, the property description, and any modifications to payment terms. The agreement clarifies who is responsible for future payments, whether the original borrower remains liable, and whether the lender issues a substitution of obligor or obtains a novation. This document is commonly recorded in county land records to protect the parties' interests.

Why an Assumption Agreement matters for buyers, sellers, and lenders

An Assumption Agreement can preserve an existing interest rate, simplify ownership transfer, and document lender conditions. It protects all parties by stating whether the original borrower is released, allocating liabilities, and enabling accurate public records for title and tax purposes.

Who completes and relies on an Assumption Agreement of Mortgage

Typical users include buyers, sellers, mortgage lenders, title companies, closing attorneys, and recording clerks involved in property transfers.

Buyer seeking to assume mortgage: Completes borrower sections, provides proof of identity and credit documentation required by the lender.
Seller / current borrower: Confirms lender consent terms and indicates whether release of liability is requested or expected.
Lender or loan servicer: Reviews, conditions approval, and often requires underwriting, assumption fee, and execution of lender-specific forms.

Each party should verify lender requirements, county recording procedures, and tax reporting impacts before final execution.

Step-by-step: completing an Assumption Agreement of Mortgage

Follow these core steps to prepare, approve, and record an Assumption Agreement with minimal friction.

01

Prepare draft: Complete party, loan, and property fields; attach existing mortgage reference.
02

Request lender consent: Submit assumption package to servicer with credit and income documentation.
03

Execute and notarize: All parties sign before a notary or RON where permitted.
04

Record: File at county recorder office and provide copies to lender and title insurer.

How the assumption process typically flows

This high-level flow shows roles and the usual sequence from request through recording.

Request Submission: Buyer submits application and supporting documents to lender.
Underwriting Review: Lender performs credit, income, and title checks; may require fee.
Agreement Execution: Assumption Agreement signed by parties; lender signs if required.
Recording: Document recorded; title updated and release recorded if issued.

Essential sections to include in a professional Assumption Agreement

A complete Assumption Agreement addresses identities, loan specifics, consent, liabilities, recording, and governing law to limit disputes and ensure enforceability.

Party identification

Full legal names, addresses, and contact details for assumer, original borrower, and lender; include loan number and title company reference.

Loan terms

State mortgage principal, interest rate, payment schedule, and any agreed modifications or forbearance incorporated into the assumption.

Lender consent and conditions

Record lender approval language, required fees, underwriting conditions, and whether the lender issues a release of liability for original borrower.

Liability allocation

Specify whether the original borrower remains secondarily liable or is released, and the effective date of any release.

Recording and indexing

Include instructions for county recording, necessary notary text, and acknowledgment for public record clarity.

Governing law

Name the controlling state law and venue for disputes; this helps interpret obligations and statute of limitations.

Configuring an online workflow for assumptions and lender approvals

Use these fields and settings when building an e-signature workflow to capture required evidence and meet lender requirements.

Field	Configuration
Authentication	Email plus SMS or KBA for lender-required identity proofing
Conditional Fields	Show lender conditions only after 'ConsentRequired' checkbox is checked
Audit Trail	Enable IP, timestamp, and action log capture for ESIGN evidence
Integrations	Connect with title or loan systems via Salesforce, NetSuite, or Box

Digital signing and eSubmission: technical considerations

Ensure your e-signature platform supports secure authentication, audit trails, and the file formats required by recorders and lenders.

File formats: PDF/A or signed PDF required by many recorders
Integrations: Salesforce, NetSuite, Microsoft 365, Google Workspace supported
Notary / RON: Platform must support RON session recording where state permits

Verify lender and county recorder technical acceptance before eSubmitting; maintain copies of signed PDFs and the full audit trail for retention and title purposes.

Typical timelines and processing expectations

Assumption timelines vary by lender and county; expect underwriting and recording-related steps that impact closing schedules.

Lender response:

30–45 days typical for underwriting

Notarization:

Same-day if scheduled; RON subject to state rules

Recording turnaround:

1–4 weeks depending on county backlog

Title update:

Title company posts endorsement after recording

Tax reporting:

Report changes on next tax cycle as required

Key milestones from application to recorded assumption

A concise milestone view helps coordinate underwriting, signing, and recording tasks for all parties.

01

Package Submission

Buyer submits application with credit and income documents.

02

Underwriting Decision

Lender approves, conditions, or denies the assumption request.

03

Execution & Notarization

Parties sign and notarize the executed agreement.

04

Recording & Notice

Document recorded and title/servicer notified of change.

Common preparation pitfalls to avoid

Using an incomplete legal description can prevent recording and delay title endorsement for weeks.
Failing to obtain explicit lender consent may trigger acceleration or denial of transfer rights.
Mismatched signer names versus ID can void notary acknowledgments and require re-execution.
Omitting a clear liability release leaves the original borrower exposed to future collection actions.

Risks and potential consequences of a flawed Assumption Agreement

Lender denial: Loan may be accelerated or sale blocked

No release: Original borrower remains liable

Recording rejection: County may refuse to index

Title insurer denial: Coverage for assumption may be excluded

Tax misreporting: May trigger incorrect filings

Notary defects: Document may be voided

How an Assumption Agreement differs from novation and loan modification

Compare the document types to choose the right instrument for transferring mortgage obligations and liabilities.

Criteria	Assumption	Novation	Loan Modification
Primary effect	new party assumes	original released	terms changed
Original borrower relieved	sometimes
Lender approval required	usually
Recorded instrument	usually	usually	sometimes

eSignature vendor comparison for executing Assumption Agreements

Common vendor features and starting prices for eSignature platforms used to complete and notarize Assumption Agreements. signNow appears first per platform comparison rules.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Yes	Yes	Yes	Yes
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Real-world scenarios where an Assumption Agreement is used

These illustrative examples show common contexts for assumption agreements and the practical outcomes for parties involved.

Sale with Rate Retention

A buyer assumes an assumable mortgage to keep a low interest rate

lender requires credit approval and an assumption fee
the agreement documents lender consent, payment schedule, and whether the seller is released from liability, then is recorded at the county recorder.

Estate Transfer

An heir assumes a mortgage after inheriting property

title company conditions the transaction on recorded assumption language
the Assumption Agreement clarifies liability allocation, lists the loan number, and updates title records so the estate closes cleanly.

Frequently asked questions about Assumption Agreements and eSigning

Answers to common operational, legal, and technical questions encountered when preparing or eSigning an Assumption Agreement.

Need help? Contact support

What is required for lender consent?
Lenders typically require an application, credit and income verification, and an executed Assumption Agreement. Some lenders charge an assumption fee and may require underwriting similar to a new loan; the lender's servicer will specify documentation and timelines.
Can an assumption be completed without lender approval?
No, most mortgages contain a due-on-sale clause that permits the lender to accelerate without explicit consent. Relying on an unapproved assumption risks acceleration, foreclosure, or repudiation of the transfer.
Does the original borrower remain liable after assumption?
Only if the lender does not issue a release. An assumption can leave the original borrower secondarily liable unless the lender executes a novation or explicit release of liability in writing.
Is an Assumption Agreement valid if signed electronically?
Yes, electronic signatures are valid under the ESIGN Act (15 U.S.C. ch. 96) and by UETA in adopting states, provided intent, consent, attribution, and reliable record retention are met.
Are notary or witness steps required?
Many counties require notarized acknowledgments for recording. Remote online notarization (RON) is permitted in most states with identity proofing and audio-video recording requirements; verify state notary rules before using RON.
What if the county rejects recording?
Common reasons include incomplete legal description, missing acknowledgments, or fee errors. Correct the defect, re-execute if necessary, and resubmit with proper fee to avoid title or lien priority issues.

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