adj. referring to the acquisition of title to real property upon which there is
an existing mortgage or deed of trust when the new owner agrees to take title with
the responsibility to continue to make the payments on the promissory note secured
by the mortgage or deed of trust. Thus, the new owner (grantee) buys the property
"subject to" secured debt. However, should the new owner fail to pay, the original
debtor will be liable for the payment, but the holder of the mortgage or beneficiary
of the deed of trust may foreclose and the buyer could thus lose title. This differs
from the new title holder "assuming" the mortgage or deed of trust by a written
transfer of the obligation. Such a transfer must be approved by the lender, since
the new owner's credit may or may not be as strong as the original owner/borrower's.
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