| May 23, 2012 |
|
Question: What is the difference between "assuming" a loan and buying "subject to" the mortgage?
Answer: In the general case, with an "assumption" a lender will first pursue the new borrower and then come after the original debtor if there is a default. If the loan was taken "subject to" the mortgage, then the original borrower remains responsible for the loan in the eyes of the lender.
|