Property Ownership
A buyer purchases a property subject to an existing mortgage. What is the buyer's liability if the lender forecloses?
AThe buyer is personally liable for any deficiency judgment
BThe buyer has no personal liability; the original borrower remains liable✓ Correct
CThe buyer and seller share the deficiency equally
DThe buyer is liable only for the amount of the down payment
Explanation
When a buyer takes 'subject to' an existing mortgage, they do not assume personal liability for the debt. The original borrower remains personally liable, and the buyer risks only losing the property in foreclosure.
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