Finance
A Mississippi property is purchased 'subject to' an existing mortgage rather than through formal assumption. The key difference is:
ASubject-to transfers are illegal in Mississippi
BIn a 'subject to' purchase, the buyer takes title but the original borrower remains personally liable on the mortgage; in an assumption, the assuming buyer takes personal liability✓ Correct
CSubject-to requires lender approval
DThere is no practical difference between the two
Explanation
In a 'subject to' transaction, the buyer takes title with the mortgage still in the seller's name. The seller retains personal liability on the mortgage note while the buyer makes payments.
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