Escrow & Title
A New York property is sold 'subject to' an existing mortgage. This means the buyer:
AAssumes personal liability for the existing mortgage
BTakes title with the existing mortgage remaining on the property but is NOT personally liable for the debt; the original borrower remains liable✓ Correct
CPays off the existing mortgage at closing
DAgrees to refinance the existing mortgage within 60 days
Explanation
Purchasing 'subject to' an existing mortgage means the buyer takes title to the property with the mortgage lien remaining, but does not personally assume the debt. If the buyer defaults, the lender can foreclose on the property, but cannot pursue the buyer personally for any deficiency. The original borrower remains personally liable.
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