When a Buyer Acquires a Property Having an Existing Mortgage

question 27

Multiple Choice

When a buyer acquires a property having an existing mortgage loan, a decision must be made as to whether or not the subsequent owner of the property can preserve the loan. If the buyer does not add his or her signature to the note, the buyer does not take on any personal liability. In this case, the buyer is said to:

• A) assume the old loan
• B) purchase the property subject to the existing loan
• C) obtain the property through the use of a contract for deed.
• D) foreclose on the property