If a buyer does not assume the loan, what is the result?

When a buyer does not assume the loan, the seller remains responsible for the existing mortgage debt. This means that while the seller cannot transfer their obligation to the buyer, they can still pursue remedies to recoup any financial losses incurred due to a buyer's failure to pay. If the buyer defaults on their payment obligations, the lender has the right to foreclose on the property, which is a legal process to recover the amount owed by selling the property. However, the seller's losses are typically limited to the foreclosure process itself because the original loan remains their liability.

In this scenario, the seller can try to recover their losses through foreclosure, but they are still subject to the terms of the loan agreement with the lender. The lender will seek repayment, and the seller may end up responsible for any deficiency if the sale proceeds do not cover the total balance owed under the loan. Thus, the possibility of recouping some losses through foreclosure is tied directly to the seller's continued accountability for the loan in the event the buyer does not assume it.