Loan assumption vs new loan

I am facing this complicated dilemma with a medical clinic and their reckless managing. Here goes, This clinic +property is being sold by owner, they have payed it off some time in '06, then decided to take out a 1.4 mil dollar loan for personal reasons against the property, the owner is proposing an assumption of the loan and property, but one problem the bank is not interested in that idea. The property is worth around $850k, now I'm not sure which route would be best to go by. The banker of this actual loan suggested that a partnership to be formed where the owner can have me on as part owner, then down the line I can reduce his ownership to bare minimum close to 1% this way I would avoid paying for a new loan, down payment and all the costs involved. An assumption this way bank is ok with, but it will be for whatever is left from the original note which is around $1.3 million. I just need a little guidance if I chose to apply for a new loan I'm thinking I would be financed for the $850,000 instead. Wouldn't this be a better route than trying to avoid initial costs and be stuck with a larger amount. Please help and if there are other ways of going about please enlighten me I greatly appreciated in advance . [/b]