Assumption Agreement and Release

ASSUMPTION AGREEMENT AND RELEASE

This Assumption agreement and release is made on ___ , ___ , by and among ___ a ___ of ___ (the “Bank”), ___ of ___ (the “Original Borrower”) and __ of __ (the “Assuming Borrower”).

RECITALS

a. On or about ___, ___, the Original Borrower borrowed from the Bank the sum of $___ and executed and delivered to the Bank a Mortgage Note dated ___ in the principal amount of $___, a copy of which is attached, pursuant to which the Original Borrower agreed to repay the loan on the terms and in the manner provided in the Mortgage Note.

b. To secure repayment of the Mortgage Note and any extensions, renewals, or modifications thereof, the Original Borrower executed and delivered to the Bank a certain Mortgage dated___, recorded ___ in Liber ___ Page ___ in the office of the ___ County, Michigan Register of Deeds (the “Mortgage”), pursuant to which the Original Borrower mortgaged to the Bank certain real property located in the ___ of___, ______County, Michigan legally described as:

The street address of which is ___

c. On ___, ___, the Bank and the Original Borrower executed an Amendment to Mortgage Note, a copy of which is attached, pursuant to which the Mortgage Note dated ___, ___, was amended in certain respects.

d. The Original Borrower has sold the property to the Assuming Borrower and has conveyed the Property to the Assuming Borrower by warranty deed dated ___, ___, recorded ___, ___, in Liber___, Page ___, in the office of the ___County, Michigan, Register of Deeds. The sale and conveyance from the Original Borrower to the Assuming Borrower was subject to the Mortgage.

e. The parties now desire that the Assuming Borrower assume and agree to pay and fulfill all of the obligations of the Original Borrower under the Mortgage and Note (as amended by the Amendment to Mortgage Note), and under the Mortgage, and that the Original Borrower be released by the Bank from all obligations and liabilities under the Mortgage Note (as amended by the Amendment to Mortgage Note), and the Mortgage. The Mortgage Note (as amended by the Amendment to Mortgage Note) is hereafter referred to as the “Note”.

NOW THEREFORE, the parties agree as follows:

1. The [Assuming Borrower is/Assuming Borrowers jointly and severally are] substituted for the Original Borrower as the obligor under the Note and as the mortgagor under the Mortgage. The [Assuming Borrower/Assuming Borrowers jointly and severally] assumes and agrees to pay the Note in accordance with its terms and to be subject to all of the provisions of the Note as fully and completely as though the Assuming Borrower originally executed it. The [Assuming Borrower/Assuming Borrowers jointly and severally] assumes and agrees to pay, perform, and fulfill all of the obligations of the Original Borrower as mortgagor under the Mortgage and to be bound by all of its terms and provisions, as fully and completely as though the Assuming Borrower had originally executed the Mortgage as mortgagor.

2. The parties agree that as of the date of this Assumption Agreement and Release:

a. The unpaid principal balance of the Note is $___ .

b. Interest on the Note has been paid through ___ .

c. All payments required to be made under the Note have been made.

d. The monthly tax escrow payment currently required to be paid under the Mortgage is $__ so that the total monthly payment currently required to be paid to the Bank under the Note and Mortgage is $___ .

e. No provision of the Note or the Mortgage has been modified or waived in any respect (except by the Amendment to Note dated ___ ) and all of its provisions are ratified and confirmed.

3. The bank releases and discharges the Original Borrower from all liability under the Note and the Mortgage.

4. The whole of the property shall remain subject to the lien of the Mortgage and nothing contained in this Agreement shall affect the lien of the Mortgage to its priority over any other lien or encumbrance.

The parties have executed this Assumption Agreement and release on the date first written above.

By: ______
Its: ______
______Bank
______
Original Borrower
______
Assuming Borrower
STATE OF MICHIGAN / )
____COUNTY / )
The foregoing instrument was acknowledged before me this [date] by [name of officer or agent, title of officer or agent] of [name of corporation acknowledging], a [state or place of incorporation] corporation, on behalf of the corporation.
/s/______
[Notary public’s name, as it appears on certificate of appointment]
Notary public, State of Michigan, County of [county].
My commission expires [date].
Acting in the County of [county].
Drafted by and when recorded return to:
[Name and address of drafting attorney]