Answer: A. The buyer took "subject to" the seller's loan.
Explanation:
When a loan such as a mortgage is taken ''subject to'', it means that even though the buyer commits to pay off the loan that the seller is liable for, the seller is still officially liable for the loan to the lenders.
When the buyer defaulted therefore, it will be treated as though the seller is the one who defaulted as they are still liable so the seller's credit rating will suffer.
