Sales with a neck mortgage loanUncategorized
Among the many questions on the part of borrowers, the question of selling a mortgaged flat often arises. Is it possible at all? How should such a transaction be carried out?
The sale of an apartment with a mortgage is not uncommon
This requires going through additional procedures, but if you are aware of them, you can avoid problems. One of the first steps, when we decide to sell a mortgaged apartment, will be to provide a bank certificate of the outstanding amount and the bank account number that should be affected by the funds.
Such a document will be required by the notary public writing the notarial deed to determine the method of payment. In addition, the certificate should include information about when the bank will issue documents confirming this fact and consent to remove the mortgage from the Land and Mortgage Register after the loan is repaid. If the buyer will finance the transaction with a bank loan, a certificate from the seller’s bank will be needed in advance, as it must be submitted with the loan application.
It is also worth remembering what the payment for the property will look like, in what order the loan tranches will be launched. In the case of financing a purchase from own funds, the method of their payment is determined by the parties to the transaction. However, if the purchase is financed by a bank loan, then the bank may impose the order.
Some banks will first launch a loan tranche to repay the seller’s liability, and only then, after presenting the repayment certificate and consent to delete the mortgage, will the payment of the remaining funds for the seller be made. You have to remember that sometimes we will have to wait several weeks for full payment for the flat.
Worth paying attention to the amount of loan debt and the price of the property
If the debt balance is higher than the transaction price, then before selling the property it will be necessary to overpay the loan from own funds, so that the funds obtained from the buyer will be enough to repay the entire liability and remove the mortgage from the Land and Mortgage Register.