Sellers Credit when Selling Subject To

[Patrick Milia]

The answer seems obvious to me, but I'll ask the question anyway. When a seller deeds their property to a buyer subject to the existing mortgage, that mortgage stays on the sellers credit report until the loan is paid in full, correct? I have a seller trying to decide what's worst; walking away from their house, losing it to foreclosure and having their credit hurt for 7 years, or selling the property subject to their existing mortgage (which still has 21 years left) and having that mortgage hurt their debt to income ratio for all other purchases for the next 21 years?