Mortgage Novation
February 22, 2012 · Posted in Mortgage
Mortgage Novation
What is Mortgage Novation?
Mortgage novation is a legal process by which a person with a mortgage loan can transfer that loan to another person which releases the original loan holder from the liability of making the payments on the loan. ‘Novation’ is actually a term used in contract and business law that describes the act of either replacing an obligation to perform with a new obligation, or replacing a party to an agreement with a new party.
