Escrow & Title
In North Dakota, a buyer who takes title 'subject to' an existing mortgage differs from a buyer who 'assumes' the mortgage in that the buyer taking subject to:
AMust qualify with the lender
BDoes not become personally liable for the mortgage debt✓ Correct
CReceives a credit on the closing statement for the loan balance
DTakes title with a lender's approval
Explanation
Taking title 'subject to' means the buyer acknowledges the mortgage exists but does not personally assume liability. 'Assuming' a mortgage means the buyer accepts personal liability. In both cases, the property secures the debt.
Related North Dakota Escrow & Title Questions
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