Sale Subject to existing loan is a transaction when a buyer assumes or takes over debt payments of the seller. It is ideal for sellers that have very little or no equity or who are behind on payments and facing foreclosure, or who owe more for a property than it is worth. To be attractive for buyers, seller’s monthly loan payment has to be fixed. In this transaction buyers take over the debt payments of the seller and make payments for the seller. Buyer issues a promissory note to the seller. Seller deeds/transfers the property to the buyer. If buyer defaults, seller can start foreclosure process and gets the property back. Buyer will lose all down payment and closing costs that were paid when property has been purchased.