Michigan Real Estate Exam Practice Question
Which of the following is true about mortgage assumptions?
Correct Answer: A
Rationale: In a mortgage assumption, the buyer indeed assumes personal liability for the mortgage debt, meaning they are responsible for making payments. This makes option A accurate.
Option B is misleading; while a seller may remain liable unless explicitly released by the lender, they are not automatically released in all cases. Option C is incorrect since the buyer typically does not sign a new mortgage note but rather takes over the existing one. Lastly, option D is false; the transfer of a warranty deed does not automatically release the seller from liability for the mortgage, as lender approval is often required.
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