Taking over an existing mortgage: who can, how, and what it takes
Assumption vs subject-to
Desk answer
A formal assumption transfers the loan to you with the servicer's approval. Buying subject to the existing mortgage leaves the loan in the seller's name, and many loans let the lender demand full payment if the home is sold. Get legal advice before any informal arrangement.
Last reviewed against the primary sources listed below.
Compare
| Assumption | Subject-to | |
|---|---|---|
| Servicer approval | Yes | No |
| Seller still liable | Not after release | Yes |
Assumption questions
Is buying subject-to the same as assuming a loan?
No; there is no servicer approval.
What is a due-on-sale clause?
It lets the lender demand payment if the home is sold.