VA Assumption Seller
Release of liability
Why sellers should confirm they are released from the loan after an assumption.
5 minute read
Confirm the release
- A release of liability can relieve the seller of responsibility for the assumed loan when the buyer is approved through the proper process.
- Ask the servicer how release of liability is handled in your case and get confirmation in writing.
Source: VA Circular 26-23-10: VA Assumption Updates; VA Circular 26-23-27: Noncompliance in Processing Assumptions
Sources
Official material this lesson draws on. Vanguard's explanation is educational; current official requirements govern.
Educational context matters. Loan assumptions depend on the specific loan, servicer review, buyer qualification, current VA guidance, and the facts of the transaction. Verify details with qualified professionals.