Subject to the mortgage

The second method is purchasing a property "subject to" the mortgage. In this scenario, the buyer takes the title to the home and begins making the monthly payments, but they do not sign a new note with the bank. Legally, the seller is still the one responsible for the debt. This carries significant risk for the seller; if the buyer stops making payments and the property is foreclosed upon, the lender will pursue the seller, not the buyer, for any money still owed. The buyer loses the property, but the seller is the one who faces the financial liability for the debt itself.Most people get a brand new loan to buy a house. But sometimes, a buyer steps into the seller's shoes and takes over their existing loan. This is risky and requires specific legal structures.