Sometimes owners sell a mortgage apartment in order, for example, to buy more housing. Such transactions are normal practice. This article will tell you how to sell an apartment purchased with a mortgage.
Are there any restrictions on the sale of an apartment that is in a mortgage
If the real estate is bought with a mortgage, then until the loan is repaid, it is pledged by the bank.
As long as the property is pledged, it will not be possible to sell it just like that .zThe mortgage office will see the mortgage record and will not register ownership of the new buyer.
To sell a mortgage apartment, the seller must first pay off the loan debt (or obtain a sale permit from the bank if the bank oversees the transaction). After that, the bank will inform the mortgage office that there is no debt. And the record that the property is in the mortgage will be deleted. This is called the release of the encumbrance.
How to remove encumbrances and sell an apartment? There are several options.one
The seller extinguishes the mortgage and sells the apartment
The owner-seller finds the money himself to pay off the mortgage.
To do this, you can take a consumer loan, use your own savings or borrow from relatives. Debts can be returned after the sale of the apartment.2
The buyer gives money to the seller to pay off the mortgage
In this case, the buyer of the apartment gives the seller money to pay off the mortgage. It is better to transfer money only within the framework of a preliminary sales contract.
After the old owner extinguishes the mortgage loan, the bank removes the encumbrance from the apartment, a sale and purchase agreement is concluded, and the transfer of ownership is registered for the new owner
The transaction for the sale of a mortgage apartment is fully conducted by the bank
The most reliable option. In this case, the old owner sells the mortgage apartment with the consent of the bank, which fully oversees the transaction, and removes the encumbrance from the property.
The buyer takes a mortgage from the same bank and settles accounts with the seller. And the seller of the apartment, having received money from the buyer, closes his mortgage.
How to sell a mortgage apartment in some banks
An apartment bought with a mortgage institution can also be sold and bought, including a mortgage.
If the seller has an electronic registration of ownership, the bank itself will reissue the deposit to the buyer of the apartment. If there is no electronic registration, the seller himself removes the encumbrance from the real estate through the mortgage authority as in some countries.
If the mortgage is approved, collect a package of documents for the approval of the property. The mortgage manager himself will request most of the papers from the seller and order from the mortgage office.
It is important to remember that such transactions have one limitation: it is possible to sell and buy a mortgage apartment only in the same city where the mortgage was previously issued.
Is it possible to sell a mortgage apartment bought with a mortgage in another bank
Yes. With a mortgage from a particular bank, you can buy or sell an apartment on the secondary market, which was purchased with a mortgage from any other bank.
In this case, the bank gives the seller a loan to pay off the mortgage debt in another bank. To apply and get a loan, you don’t need to go anywhere and collect certificates: everything is completely online.
The seller’s mortgage debt is repaid by the bank, and not at the expense of the buyer’s credit funds. This allows you to quickly remove the encumbrance, sell the apartment and repay the loan at the expense of the funds from the sale of the apartment.
What to do if the seller has delayed mortgage payments
The circumstances of selling an apartment with a mortgage may vary. Someone decided to change the apartment due to the birth of children. Someone needs to move to another city, someone urgently needs a large sum of money. And someone could not or did not want to continue to pay the mortgage.
Whatever the reason for the sale – all this will not affect the buyer after the transaction. No obligations of the seller, including fines or forfeits, can be transferred to him.