What does the term "subject to the mortgage" imply for a buyer?

The term "subject to the mortgage" signifies that the buyer is acquiring the property while the existing mortgage remains in place but is not assuming personal liability for the mortgage debt. In this scenario, the original borrower retains responsibility for the loan, meaning the buyer can take over the property and make payments, but in legal terms, the lender can still pursue the original borrower if there is a default on the mortgage.

This arrangement allows the buyer to benefit from the property without taking on the full legal commitment of the loan itself, which can be advantageous in certain situations. While the mortgage remains encumbered on the property, the original borrower's liability stays intact; therefore, the lender's recourse remains directed at the original borrower should payments not be made.

The other provided choices do not accurately capture this nuance. For instance, if a buyer were to assume the mortgage, they would become personally liable, which contradicts the essence of being "subject to." Similarly, modifying mortgage terms or refinancing would require the lender’s involvement and is not associated with simply taking over payments under the original conditions.