Final answer:
The person who assumes an existing mortgage becomes the mortgagor and takes on the obligation for repayment. The original borrower is not automatically relieved of their obligations unless there is a specific agreement to do so. The option (B) is correct.
Step-by-step explanation:
A person who assumes an existing mortgage becomes the mortgagor. Assuming a mortgage means that the individual takes over the loan payments and agrees to fulfill the obligations originally outlined in the mortgage contract. The new mortgagor is then responsible for the repayment of the loan.
This does not automatically relieve the original maker of the obligation, unless there is an explicit agreement, such as a novation, that releases the original borrower from their duties. Without such an agreement, the original borrower may remain liable if the new mortgagor fails to make the loan payments. The term cosigner refers to another individual or firm that pledges to pay the loan if the primary borrower defaults, but this is not the same as assuming a mortgage. Therefore, option (B) is correct.