Escrow & Title
In Alaska, a buyer who purchases a property subject to an existing first mortgage that is NOT being paid off at closing takes the property:
AFree of the mortgage
BSubject to the mortgage — the mortgage lien remains attached to the property✓ Correct
CWith the original seller remaining jointly liable
DOnly if the lender approves the transfer
Explanation
When a buyer purchases 'subject to' an existing mortgage (rather than assuming it), the mortgage lien remains on the property. The original borrower remains liable on the note. If the new owner doesn't make payments, the lender can foreclose even though the new owner is not personally liable on the note.
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