May 23, 2012

Contrast "Assumptions" And Buying "Subject To" The Loan?

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.


Written by Peter G. Miller.

© 1997 Peter G. Miller. All Rights Reserved. Rules, Disclaimers & Notices.


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