When a grantee takes title to real property subject to a mortgage, grantee is not responsible to the holder of the promissory note for the payment of any portion of the amount due. The most that grantee can lose in the event of a foreclosure is grantee’s equity in the property. (See also “assumption of mortgage”.) In neither case is the original maker of the note released from primary responsibility. If liability is to be assumed, the agreement must so state.
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