What is an assumption agreement? The assumption agreement is usually involved a real estate transaction, where the buyer is going to take over the mortgage payments of the seller. So, the buyer takes over the payments or assumes those payments and starts making the payments. Now, if you have an assumption agreement with the lender then you have to have all parties agree to that, that the buyer will make the payments. And the lender recognizes the buyer as the new borrower and the new borrower continue is the one that is liable for the loan. However, most lenders do not release the seller or the person who initially made the loan. So, they’ll hold both parties responsible. So, an assumption agreement is between the lender, the person who borrowed the money or the person that’s indebted and the person who’s taking over the loan payments. And that’s what the assumption agreement is. If you have any questions about it, give me a call at (727) 847-2288.