subject to mortgage

subject to mortgage definition - business

subject to mortgage

A condition in a property sale agreement under which the buyer agrees to make monthly mortgage payments on the existing mortgage, although the seller of the property remains liable for the payments in the event the buyer defaults. This differs from an assumable mortgage, in which the buyer assumes full responsibility for an existing mortgage. See also assumable mortgage.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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