LOAN ASSUMPTION ADDENDUM TO CONTRACT CONCERNING THE PROPERTY AT:  ___________________________________________________________________________ (Address of Property) A. CREDIT DOCUMENTATION:  Within _____ days after the effective date of this contract, Purchaser shall deliver to Seller the following: [check all applicable items:]   _____credit report   _____verification of employment, including salary   _____verification of funds on deposit in financial institutions   ____current financial statement to establish Purchaser's creditworthiness.  Purchaser hereby authorizes any credit reporting agency to furnish to Seller at Purchaser's sole expense copies of Purchaser's credit reports. B. CREDIT APPROVAL:  If Purchaser's documentation is not delivered within the specified time, Seller may terminate this contract by notice to Purchaser within 7 days after expiration of the time for delivery, and the earnest money will be paid to Seller. If the documentation is timely delivered, and Seller determines in Seller's sole discretion that Purchaser's credit is unacceptable, Seller may terminate this contract by notice to Purchaser within 7 days after expiration of the time for delivery and the earnest money will be refunded to Purchaser.  If Seller does not terminate this contract, Seller will be deemed to have accepted Purchaser's credit. C. ASSUMPTION: _____   (1) The unpaid principal balance of a first lien promissory note payable to which unpaid balance at closing will be $________________. The total current monthly payment including principal, interest and any reserve deposits is $________________. Purchaser’s initial payment will be the first payment due after closing. _____   (2) The unpaid principal balance of a second lien promissory note payable to which unpaid balance at closing will be $________________. The total current monthly payment including principal, interest and any reserve deposits is $________________. Purchaser’s initial payment will be the first payment due after closing. Purchaser’s assumption of an existing note includes all obligations imposed by the deed of trust securing the note. If the unpaid principal balance(s) of any assumed loan(s) as of the Closing Date varies from the loan balance(s) stated above, the  [check only one:]  _____cash payable at closing   _____Sales Price   will be adjusted by the amount of any variance; provided, if the total principal balance of all assumed loans varies in an amount greater than $350.00 at closing, either party may terminate this contract and the earnest money will be refunded to Purchaser unless the other party elects to eliminate the excess in the variance by an appropriate adjustment at closing. Purchaser may terminate this contract and the earnest money will be refunded to Purchaser if the noteholder requires (a) payment of an assumption fee in excess of $________________ in (1) above or $________________ in (2) above and Seller declines to pay such excess, (b) an increase in the interest rate to more than ________% in (1) above, or ________% in (2) above, (c) any other modification of the loan documents, or (d) consent to the assumption of the loan and fails to consent. An appropriate instrument authorized within the state, typically either (1) a mortgage or (2) vendor's and deed of trust liens, to secure the assumption will be required, and it will automatically be released on execution and delivery of a release by noteholder. If Seller is released from liability on any assumed note, the instrument securing the assumption will not be required. If noteholder maintains an escrow account, the escrow account must be transferred to Purchaser without any deficiency. Purchaser shall reimburse Seller for the amount in the transferred accounts. NOTICE TO PURCHASER: The monthly payments, interest rates or other terms of some loans may be adjusted by the noteholder at or after closing. If you are concerned about the possibility of future adjustments, do not sign the contract without examining the notes and the instrument securing the note. NOTICE TO SELLER: Your liability to pay the note assumed by Purchaser will continue unless you obtain a release of liability from the noteholder. If you are concerned about future liability, you should use the a Release of Liability Addendum. PURCHASER: ____________________          ____________________________________________ Date                                      [purchaser's signature above/printed name below]                                                ____________________________________________                                              [purchaser's signature above/printed name below] SELLER: ____________________          ____________________________________________ Date                                      [seller's signature above/printed name below]                                              ____________________________________________                                              [seller's signature above/printed name below]  To Download the TREC Seller Financing Addendum Please Click Here

 

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