Subject To with SD401K

[Kathryn Knoblauch]

Hello Bigger Pockets Members,

I am considering making an offer on a property using my SD 401K Trust that has existing financing. The financing is a loan carried by the previous owners, who may consider allowing a new buyer to assume the loan. Since my 401K requires that any debt be non recourse, how does one make sure this is the case with the private loan currently in place? Does certain verbiage have to be added to the loan?  Would I need to have new paperwork drawn up to comply with SD 401K rules regarding non recourse debt? Any advice appreciated. This is in California, San Francisco Bay Area