
07/10/2025
You just helped your client sign a financial time bomb.
Did you check the mortgage assumption clause?
Most attorneys overlook this:
When one spouse assumes the mortgage,
the other often remains legally tied to the note.
They gave up the house—but not the debt.
They moved on—but their credit didn’t.
They’re stuck—unable to qualify for future financing.
A sample clause as below can assist in avoiding common settlement language pitfall:
As successor in interest and in accordance with Garn-St. Germain Depository Institutions Act of 1982, shall assume full legal and financial responsibility for all obligations associated with the existing mortgage on the Property, currently serviced by , or any future mortgage servicer to whom the loan may be assigned. Said obligations include but are not limited to, the full monthly mortgage payment, property taxes, homeowners' insurance, HOA dues, and all other related escrow items. shall also assume sole responsibility for the ongoing maintenance and upkeep of the Property, including any necessary repairs, improvements, or actions reasonably required to preserve the home's condition and maintain its current fair market value.
**This is not legal advice. Always review with qualified professional.