What term is used when a buyer assumes the seller's mortgage?

When a buyer assumes the seller's mortgage, the appropriate term for this action is "Assumption." This refers to the buyer agreeing to take over the responsibility of paying the seller's existing mortgage debt. In real estate, this often occurs when a buyer finds a property appealing and prefers not to secure new financing. Instead, they agree to "assume" the mortgage already in place, which can sometimes make the process smoother and potentially allow the buyer to benefit from any favorable terms or lower interest rates associated with the original mortgage.

In contrast, subrogation typically relates to the legal process where one party steps into the shoes of another to claim a right or remedy. Transfer involves moving ownership or interest in a property but does not specifically address the direct assumption of a mortgage. Assignment usually pertains to transferring rights or benefits from one party to another, often within a lease or contractual context, rather than assuming a debt obligation like a mortgage. Therefore, "Assumption" is the most precise term for a buyer taking over the seller's mortgage responsibility.