Property Ownership
A Mississippi property is purchased subject to an existing first mortgage. This means the buyer:
AAssumes personal liability for the mortgage
BTakes title subject to the existing mortgage without assuming personal liability; if they default, the lender can foreclose but cannot sue them personally✓ Correct
CRefinances the property at closing
DMust pay off the existing mortgage within 60 days
Explanation
Purchasing 'subject to' a mortgage means the buyer takes title with the mortgage remaining on the property, but does not assume personal liability for the debt. The seller remains personally liable. If the buyer doesn't pay, the lender can foreclose, but cannot sue the new buyer personally.
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