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Assumption of Note |
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Assumption of NoteAgreement by a buyer to assume the liability under an existing note secured by a mortgage or deed of trust. The lender usually must approve the new debtor in order to release the existing debtor (usually the seller) from liability.Assumption of Note Similar MatchesAssumption clauseAssumption clauseA clause stating that the seller has passed to the buyer full responsibility for the mortgage on the property. Often, an assumption fee must be paid to the mortgage lender. Perfect market assumptionsPerfect market assumptionsConditions under which the law of one price holds. The assumptions include frictionless markets, rational investors, and equal access to market prices and information. AssumptionAssumptionWhen a buyer assumes the loan payments and obligations of the seller. If the buyer defaults, however, both the buyer and seller are responsible for the debt. Zero prepayment assumptionZero prepayment assumptionThe assumption of payment of scheduled principal and interest with no payments. Small country assumptionSmall country assumptionThe assumption in an economic model that a country is too small to affect world prices, incomes, or interest rates. Further SuggestionsArmington assumptionEconomic assumptions Homogeneous expectations assumption Assumption |
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