Assumption of loan.
Purchaser assumes and agrees to pay as part of the purchase price for the above described real property the balance owing upon the note evidencing a _________[e.g., FHA] insured loan described above. Purchaser agrees to pay the note according to its face and tenor, and to comply with the terms, obligations and conditions of the deed of trust and the rules and regulations of mortgagee and _________[e.g., Federal Housing Administration]. Purchaser agrees to pay to seller the balance of the purchase price above the _________[e.g., FHA] loan, in monthly installments in the amount above stated, including interest at the rate of _____% computed monthly.
Purchaser shall pay the total monthly payment at the office of the seller in _________, and out of the total payment seller shall pay to the mortgagee the payments upon the _________[e.g., FHA] loan. When seller shall have been paid the amount due seller above the _________ loan, purchaser shall pay direct to the insured mortgagee.
Purchaser will apply to the above named mortgagee and _________[e.g., Federal Housing Administration] to be accepted as an insured mortgagor or borrower on the above mentioned _________[e.g., FHA] loan in place of the seller, when seller shall have been paid the balance of the purchase price above the _________ loan.
Seller agrees, when the full balance of the purchase price, above the _________ loan, together with all interest on it, has been paid by purchaser and purchaser has been accepted in place of the seller as an insured borrower, to execute and deliver to purchaser a good and sufficient warranty deed conveying the above described real property to the purchaser, in which deed the balance then owing upon the above mentioned _________ loan shall be assumed. Purchaser agrees to execute, acknowledge and deliver to the above mentioned mortgagee an agreement of assumption and release, assuming and agreeing to pay the above mentioned _________ loan, and seller is released from any further liability on the loan.
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