How can a mortgagor be released from liability when there is an assumption?

A mortgagor can be released from liability in the context of a mortgage assumption through an express release from the mortgagee. This release occurs when the lender formally agrees to release the original borrower from the debt obligation associated with the mortgage. In an assumption, the buyer takes over the payments and the mortgage obligation, but the initial borrower often remains liable for the mortgage unless the lender explicitly says otherwise.

When a mortgagee provides an express release, it legally frees the original mortgagor from future obligations related to that mortgage. Without this release, the mortgagor could still be held responsible for the mortgage even after the buyer assumes it, exposing them to potential liability if the buyer defaults.

Other options, while potentially relevant to various contexts, do not directly lead to a release from liability in a mortgage assumption scenario. Acknowledgment from the buyer does not provide legal relief to the original borrower; filing for bankruptcy relates to the debtor's financial status but does not automatically release them from mortgage obligations; and a formal court hearing may address disputes but is not a method for obtaining release from liability unless specifically ordered by the court, which is less straightforward than obtaining an express release from the mortgagee.