What is another name for a "subject to" mortgage?

A "subject to" mortgage is commonly referred to as an assumable mortgage because it involves an agreement where the buyer takes over the seller's existing mortgage payments while the original mortgage remains in the seller's name. This arrangement allows the buyer to benefit from the existing financing terms without formally assuming the loan.

In this context, the term "assumable mortgage" is most appropriate since it specifically describes the nature of the transaction—taking over the existing mortgage and its responsibilities. This type of financing can be beneficial for buyers if the original mortgage has favorable terms, such as a lower interest rate. Understanding this distinction helps clarify how such transactions function within real estate practices, especially in Florida where various mortgage structures are common.

The other terms do not accurately describe a "subject to" mortgage. A nonrecourse loan generally refers to a loan where the lender's recovery is limited to the collateral, with no further claims against the borrower's assets. A conventional loan is a standard mortgage that is not backed by any government agency. A joint mortgage involves multiple borrowers who co-sign on a loan, but it does not convey the specific mechanics of a "subject to" arrangement.