Transfer of property title without transferring the loan liability

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The owner of mortgaged property can transfer her property just like any other owner. But she can’t change the rights of the mortgagee. Because a mortgage is an interest in land, it stays with the land even if the mortgagor transfers the property to someone else, just as a running covenant or appurtenant easement would stay with the land.
And, of course, that means the property isn’t worth as much as if there weren’t any mortgage encumbering the property.
RESTRICTING TRANSFER
Even though the right to transfer is a fundamental attribute of property ownership, mortgagees may have good reasons to be concerned about transfers of the mortgaged property. After the mortgagor transfers the property, the new owner is expected to make the payments on the mortgage loan, and the original mortgagor no longer has the same incentive to make sure the payments are made, because she doesn’t own the mortgaged property anymore.
The new owner may not be as creditworthy and reliable as the original mortgagor, and therefore a transfer may increase the risk of default. The new owner also may not take good care of the property, and the property therefore will decline in value, reducing the mortgagee’s security.

Advocate Siddhant Sharma LawRato