Can a University loan be assumed by a new buyer?
Answer When the University sells land, it may finance a portion of the purchase price paid by the original buyer. The University financing is completed under a deed of trust and deed of trust note. If the owner of real property financed by the University wants to sell their property before the loan is paid off, and the new buyer wishes to assume the University loan, the seller and buyer must first obtain the University’s approval of the assumption. To obtain that approval, the seller and buyer must comply with the Assumption of Deed of Trust and Deed of Trust Note Terms and Conditions (provided below), under which the University may consent to such an assumption. If the seller and buyer fail to secure written approval from the University prior to the seller’s transfer of the property to the buyer, the University may, at its sole option, declare all sums secured by the seller’s deed of trust to be immediately due and payable, pursuant to Paragraph 14 of the seller’s deed of trust.
