Definitions for "SUBJECT TO MORTGAGE"
A mortgage clause in which title to a mortgaged property is taken without assuming personal liability for the mortgage debt.
the process of taking title to a mortgaged property, in a situation where the property is subject to a current home loan but the person taking the title is not accepting obligation or responsibility for the home loan.In a foreclosed property, the most that a grantee can lose by this process is the property equity.
When a grantee takes title to a real property "subject to mortgage," he is not responsible to the holder of the promissory note for the payment of any portion of the amount due. The most he can lose in the event of a foreclosure is his equity in the property." (See also "Assumption of Mortgage" in this section.) The original maker of the note is not released from his responsibility to pay off the obligation.