When a buyer assumes a mortgage, which statement is true?

When a buyer assumes a mortgage, they take over the responsibility for the loan from the seller. This means that the buyer becomes liable for paying back the mortgage debt under the same terms that the seller had. Assumption allows the buyer to take over the existing loan without needing to secure a new mortgage, which can be advantageous in certain market conditions, especially if the existing mortgage has a lower interest rate than what is currently available.

The assumption typically means that the buyer is acknowledging and accepting all obligations under the mortgage. While the seller may still have some liability in certain situations (especially if the lender has not released them), the key factor is that the buyer is now responsible for the payments and the terms of the loan. This understanding makes the buyer an essential party in the mortgage contract under these circumstances.