Loan mechanics
Subject to
Buying with an existing loan left in place, without assuming personal liability
The buyer takes title and makes the payments, but never promises the lender anything. If the payments stop, the lender forecloses on the property and the buyer’s loss is limited to their equity — the original borrower remains the one liable on the note.
How the exam asks about it
The whole distinction from assumption is personal liability, and that is what the exam asks about.
Related terms
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