ContractsContract_assignment_and_novationEASY
A buyer assumes the seller's existing VA loan. The lender does not release the seller from the original note. What type of arrangement is this?
Correct Answer
C) Loan assumption
Loan assumption is the taking over of an existing loan obligation by a new borrower. Without a release, both the original and new borrower may be liable.
Answer Options
A
NovationB
Assignment of contractC
Loan assumptionD
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Related Topics & Key Terms
Key Terms:
contract_assignment_and_novationfinancingassumptionva_loan
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