when a mortgaged property is sold the new owner is able to assume the previous owner s loan for a fee this makes it easier to buy and sell properties without taking out a new loan 
borrowers must pay a penalty if they pay off the loan early in order to compensate investors for the interest they would have received in later years these penalties are typically riskier than the prepayment penalties for residential mortgages some cmbs contracts include a defeasance clause meaning that if the borrower pays off the loan early they must replace the lost interest and collateral with similar securities for example if a borrower prepays their loan they may be required to purchase treasury securities with enough cash flow to compensate investors for the lost interest defeasance requirements are spelled out in the contract and can be quite complex fixed interest ratesin most cases borrowers are not personally responsible for failure to make payments 