A mortgage clause in which title to a mortgaged property is taken without assuming personal liability for the mortgage debt.
the process of taking title to a mortgaged property, in a situation where the property is subject to a current home loan but the person taking the title is not accepting obligation or responsibility for the home loan.In a foreclosed property, the most that a grantee can lose by this process is the property equity.
When a grantee takes title to a real property "subject to mortgage," he is not responsible to the holder of the promissory note for the payment of any portion of the amount due. The most he can lose in the event of a foreclosure is his equity in the property." (See also "Assumption of Mortgage" in this section.) The original maker of the note is not released from his responsibility to pay off the obligation.
Taking title to mortgaged property that is subject to an existing mortgage without accepting the obligation on same.
When a grantee takes a title to real property subject to mortgage, he or she is not responsible to the holder of the promissory note for the payment of any portion of the amount due. The most that the grantee can lose in the event of foreclosure is equity in the property.
A term of an agreement which states that the purchaser will assume an existing mortgage registered on title to the property.
A limitation of the liability of a grantee taking title to real property subject to mortgage so that amount equals the equity in the property, a taking of title to a mortgaged property without assuming liability for the mortgage debt.
A real estate transaction in which the grantee (purchaser) takes over the existing mortgage payments from the grantor (seller) but assumes no personal liability on the mortgage. When a mortgage is taken subject to, the purchaser can walk away from the mortgage and lose nothing but the equity already invested. If, however, the purchaser assumes the mortgage, he or she becomes personally liable for any deficiencies occurring in a foreclosure sale. In both situations the original borrower is liable to the lender unless specifically released in a novation.
The buyer of an already mortgaged property makes the payments, but does not take personal responsibility for the loan. Should the mortgage be foreclosed and the property sold for a lesser amount than is owed, the grantee-buyer is not personally liable for the deficiency, but the grantor-seller is. Contrast with assumption of mortgage.
A grantee taking title to real property "subject to mortgage" is not personally liable to the mortgagee for payment of the mortgage note. In the event the grantor-mortgagor defaults in paying the note, the grantee could, however, lose property, and thus his equity, in a foreclosure sale.
The taking of title to Property by a grantee, wherein he is not responsible to the holder of the promissory note for the payment of any portion of the amount due. In the event of foreclosure, the most that he can lose is his equity in the property. The original maker of the note is not released from his responsibility.
Circumstance in which a buyer takes title to mortgaged real property but is not personally liable for the payment of the amount due. The buyer must make payments in order to keep the property; however, with default, only the buyer's equity in that property is lost. The buyer is not liable for the amount due to the lender.