Escrow & Title
In New York, when a buyer takes title 'subject to' an existing mortgage (without assuming it), the buyer:
ABecomes personally liable for the mortgage debt
BTakes the property with the mortgage encumbrance but without personal liability for the debt✓ Correct
CEliminates the mortgage at closing
DMust refinance within 6 months
Explanation
Taking title 'subject to' an existing mortgage means the buyer acknowledges the mortgage encumbrance but does not personally assume the debt. The seller remains personally liable. If the buyer defaults, they lose the property but are not personally sued for the debt.
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