When most people buy a house, they do with an brand new loan. The seller will generally pay off the existing mortgage with proceeds from the sale of the home. However, some owners take ownership of a house by taking over an existing loan. When this happens, the lender will charge a fee to update the records to reflect that their is a new owner using the same loan. The amount of this fee may vary depending on who the lender is and other unique circumstance surrounding the loan. Generally, this type of deal may be approved as an alternate to foreclosure. The bank would rather get their money than have to spend money going through such a procedure. If you are a potentially homeowner looking to go this route, don't forget to include this fee among the other costs of purchasing a home.