Many people probably consider selling a home with a mortgage. I.e., they have bought a House, but they have a mortgage with the Bank have yet to pay. Maybe the reason why you want to sell is because they can not keep paying every month and are going to move to a cheaper House, or a relative has left them to live at home. And it is logical that they ask: How can I sell my house, if you still are mortgaged? do steps have to give for the sale of a mortgaged apartment? I have to cancel the debt before the House for sale, or I subrogated debt to the buyer, so that he paid it?
In the previous article we have listed 5 tips for selling a House now to see how to sell it with a mortgage. As the process to sell a mortgaged is different to that for the sale of a flat you property and clean of debts with the banks, we will try to explain in this pot is what you have to do to get it step by step.
Sell House mortgage: cancellation or subrogation
At the time that you agreed with your bank requesting funding for the purchase of the property, conditions and interests that had to pay. Under these conditions, commissions depreciation of housing, so that if you paid the House before the stipulated time, you would have to pay an additional amount. Well, now it is time to go back to the Bank and check these conditions, communicating your desire to sell the House.
One possibility that is likely to be open is the mortgage subrogation. It means that the person who buy you the House will continue to pay the mortgage that you pay within the amount of the floor. This can be done and in fact it is usually done, but it is normal that you sell your House at one lower price than he bought it. The new owner, in this sense, would be benefited and would have more interest in buying the House, despite the subrogation.
In any case, it when you go to sell a flat is recommended that you first do a valuation or appraisal of housing, so that you can determine its current price. It may House is older, or need reforms, and has therefore decreased value, which will allow you to put a retail price more attractive to potential buyers. There are also people who prefer to buy a house without a mortgage.
When we go to sell a House with a mortgage, it is very important to have in mind that perhaps you can sell it for a price less than you bought it. Although many impose a duty, in the current situation of the property market, with the sharp decline in housing prices, this is little less than impossible. Perhaps in the next few years yes it can be done, but more than one vendor has had to lower the price to the housing.
Mortgage canceled. And now, how to sell your flat?
Once you’ve discussed it with the Bank, and you’ve assessed costs cancel or subrogate the mortgage, as well as to make an appraisal of the property to see how money can sell it, you can already put the floor for sale. Most advisable is to give it high in all real estate portals for sale of flats, since the people who want to buy now more and more online.
When potential buyers get in touch with you, you should inform them of the subrogation of mortgage and highlight all the economic advantages in terms of price which may benefit, since they will not have to hire a new mortgage to pay, at least one part of the floor, saving part of the proceedings.
On the other hand, the sale of the property must be in accordance with the legal rules: go to the notary, sign writing, pay the registration of property, paying taxes that apply and, if necessary, contact an agency to check that all the terms of the sale are legal and there are no trap or carton.
Bridge mortgages and what will happen with you?
In the case that you are selling your House with a mortgage, to buy with the money that you earn another House that is worth more cheap, hiring a new mortgage, you have the possibility of hiring a mortgage bridge.
This is an option for you, since it would allow you to buy your new property before even having sold the old one, so you don’t have to be waiting until it sold the old House to enjoy the new. You give your current home as collateral, you’d have a grace period, and once you sold the property, void part of the loan. Many people choose to move to a new apartment, where the mortgage paying is cheaper, but want to sell the former House with a mortgage.