What does "Subject to Existing Mortgage" mean?

Subject to existing mortgage" means that the sale of a property is contingent on the buyer assuming the seller's current mortgage. This means that the buyer will take over the seller's mortgage payments, but the seller will remain responsible for paying off the balance of the loan.

There are a few reasons why a property might be sold "subject to existing mortgage." For example, if the seller has a low interest rate on their mortgage and they are unable to refinance, they may choose to sell the property "subject to" in order to pass on the benefits of their low rate to the buyer. Additionally, if the seller has a lot of equity in their home, they may be able to sell the property "subject to" and still get a good price for it, even if the market value is lower than the balance of the mortgage.

However, it's important to note that selling a property "subject to" can be risky for the buyer. If the seller falls behind on their mortgage payments, the lender could foreclose on the property, even if the buyer is making the payments. Therefore, it's important for the buyer to do their due diligence and make sure that the seller is current on their mortgage payments before agreeing to a "subject to" sale.