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what is novations and how does it work??

Posted on: 10th Jul, 2010 10:46 pm
I was looking into the facts about quickdeeds, and came across the term "novations" now i want more information on that, I know it has something to do with quick deeding property where you still have a mortage on it.
Novation is a substitution of the old loan with a new one.Old loan is extinguished with new terms being imposed with the consent of both debtor and creditor.

One more type of novation is called as expromissio, where debtor transfers his debt to another person (new debtor) with the consent of all three entities namely old debtor,new debtor and creditor.

Delegation is somewhat different type of novation where creditor is changed.Old creditor transfers his rights to new creditor and debtor is also need to sign the documents in this.

keep in touch...........
Posted on: 10th Jul, 2010 11:19 pm
Hi tommiet,

You can check out the give page in order to know about novation:
http://www.mortgagefit.com/know-how/novation-mtg.html

I hope you'll get the required information regarding novation in that page.
Posted on: 12th Jul, 2010 12:11 am
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