Posted by JohnBoy on February 11, 2001 at 17:20:27:
Once you take over subject to YOU are liable to pay that loan off, period! You won’t be liable to the lender that made the loan, the seller will remain liable to the lender until it is paid off, but you will remain liable to the seller to perform on your agreement and pay off their loan! So you can’t just ever walk away as if nothing happened. The seller could file suit against you if you don’t perform and possibly collect for damages in addition to the loan amount for destroying their credit rating if you didn’t make the payments on time.
If your concern is about being able to just walk away with no future liability on your part, then stick with doing lease options with one year terms, renewable for x number of one year terms in the future. This way you only remain liable for your lease payments until your lease expiries each year and can elect not to renew for another term and just walk away at the end of your lease term in any given year.