Mortgage Assumption Agreement (Page 2 of 4) in pdf

transfer of the Property, as provided for in the Mortgage.

3. Warranties and Representations. Borrower affirms, warrants, represents and

covenants that Borrower has no defenses nor rights of set-off against Lender or against the

payment, collection or enforcement of the indebtedness evidenced by the Note and secured by

the Mortgage and owed to Lender. Borrower further warrants and represents as follows:

a. Borrower has done no acts nor omitted to do any act which might prevent Lender

from, or limit Lender in, acting upon or under any of the provisions herein, in the Mortgage, in the

Note or any other Loan Documents;

b. Borrower is not prohibited under any other agreement with any other person or any

judgment or decree, from the execution and delivery of this Agreement, the performance of each

and every covenant hereunder or under the Mortgage, Note or any other Loan Documents;

c. No action has been brought or threatened which would in any way interfere with the

right of Borrower to execute this Agreement and perform all of Borrower's obligations contained

herein, in the Note, in the Mortgage, or in any other Loan Document;

d. All financial statements of Borrower and Guarantors, if any, are true and correct in all

respects, fairly present the respective financial conditions of the subjects thereof, as of the

respective dates thereof and no material adverse change has occurred that would affect

Borrower's or Guarantors', if any, ability to repay the indebtedness evidenced by the Note and

secured by the Mortgage;

e. Borrower is duly formed, validly existing and in good standing under the laws of the

State of _____________(16)_____________ and has full power and authority to consummate

the transactions contemplated under this Agreement.

4. Acknowledgements. Borrower acknowledges that:

a. The Loan Documents are in full force and effect; and,

b. The principal balance of the loan as represented by the aforesaid Note as of the date

of this Agreement is ________________(17)________________ DOLLARS

($___________________) and principal and interest are unconditionally due and owing to the

Lender as provided in the Note.

5. Costs. Borrower shall pay all costs of the assumption made hereby, to include without

limitation, attorneys' fees and recording costs, as well as the cost of an endorsement to Lender's

title insurance policy insuring the lien of the Mortgage after the recording of this Agreement. Such

costs shall be due at closing hereunder and the payment thereof shall be a condition precedent

to Lender's consent to the transfer of the Property to Borrower. In the event that it is determined

that additional costs relating to this transaction are due, Borrower agrees to pay such costs

immediately upon demand.

6. Assumption Fee. In consideration of Lender's consenting to the conveyance of the

Property to the Borrower, Lender is entitled to, and has earned, an assumption fee in the amount

of _(18)_ percent (___%) of the original principal face amount of the indebtedness evidenced by

the Note. Said fee shall be due and payable upon the execution and delivery of this Agreement.

Borrower hereby agrees and acknowledges that said fee is being charged solely for costs relating

to the assumption of the Mortgage and not as interest for the forbearance or use of money.

7. Recordation. The recording of this Agreement on the Public Records shall evidence

Mortgage Assumption Agreement Page 2