Subject To vs Debt Assumption

[Eric Grunfeld]

Good Morning Everybody,

In this environment (as I am sure everybody has experienced) - it has been challenging in obtaining permanent financing.

I have come across some deals where the debt is not "Assumable" but the seller maybe open to a "Subject To" loan.

My question is if a "Subject To" loan is done - will the "Due On Sale" clause be executed by the lender (bank)?

And what happens if it is executed? Does the buyer have any liability (risk) if this happens? 

Thoughts?

Thank you.