Usually taking title subject to the existing loans puts a borrower in a dangerous position because this can trigger the "Accelleration Clause" - in other words, the bank, if they find out about it, can call the loan due and payable on the spot. In the case of certain inter-family transfers, however, in California, a bank cannot call the loan due. The risk would remain, however, that if the family member did not make timely payments, this could continue to affect the credit of the original borrower.
Before one did something of this nature, however, it would be prudent not only to seek out the services of an experienced real estate broker, to be sure both parties truly understand the transfer, and what they are agreeing to - AND consult with a real estate attorney. Whenever we invoke creative practices regarding real estate law, it's best to pay the money and get some solid legal advice.
Jeri Creson, Broker
TotalAccess Realty Advisors
This is just my opinion and any legal questions should always be directed to a qualified real estate attorney.
You can sell your property to anyone who qualifies for a loan, if they obtain a loan.
Keller Williams Realty Beverly Hills