Finance
When a NJ property is sold 'subject to the existing mortgage,' the original borrower remains:
AFully relieved of all liability
BPersonally liable on the original mortgage if the new owner defaults✓ Correct
CObligated to refinance within 12 months
DRequired to notify the NJREC
Explanation
In a 'subject to' sale, the buyer takes over payments but the original borrower remains personally liable on the note. If the buyer defaults, the original borrower can be sued for any deficiency unless a formal assumption and release are obtained from the lender.
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