What is the term for buying a property subject to a mortgage?

Buying a property "subject to a mortgage" means that the buyer takes over the property while the existing mortgage remains in place. The mortgage remains the legal obligation of the original borrower, and the buyer does not assume the mortgage. This arrangement allows the buyer to purchase a property with the existing financing already in place, often without needing to secure a new mortgage or go through the qualifying process again.

This approach has benefits, such as potentially lower interest rates if the original mortgage terms are favorable, and it can facilitate a smoother sales process. It does not create a direct obligation for the buyer to the lender on the existing mortgage, thus maintaining the seller's original mortgage while allowing the new purchaser to assume control of the property.

The other options, while related to financing or purchasing arrangements, do not accurately describe this specific transaction type. Buying under an installment plan refers to a payment schedule spread over time, buying subject to a loan settlement can imply a wider range of scenarios, and buying without lien obligation indicates a situation where the buyer does not take on any existing financial encumbrances, which contrasts with the situation of buying subject to a mortgage.