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An assumption agreement in a real estate transaction involves the buyer taking over the seller's mortgage payments, making the buyer responsible for the loan. Both parties must agree to the agreement, with the lender recognizing the buyer as the new borrower. However, lenders typically do not release the seller from liability, holding both parties accountable. The assumption agreement is between the lender, the borrower, and the new borrower taking over the loan payments. For more information, call 727.
