Can I sell an apartment bought in a mortgage? How to sell an apartment with a mortgage

Unfortunately, none of us is immune from sudden loss of work, unexpected illness or addition to the family. In life there can be both sad and joyful events. And even purchased on credit such desired housing will soon become burdensome or unnecessary.

Can I sell an apartment bought in a mortgage? We will try to understand this today.

When such a transaction is necessary?

Employees of lending banks often hear from their borrowers: "I want to sell an apartment on a mortgage, but I do not know where to start." The sale of the apartment, which is pledged to the bank, is still a rare phenomenon for our compatriots. However, in modern banking practice, such cases have already occurred. For example, a borrower bought an apartment on a mortgage, paid out current payments accurately, but then, due to some circumstances, he needed a bigger apartment. In this regard, he seeks a buyer for his living space with the help of a realtor or independently.

The proceeds are used to repay the loan, and the remaining part becomes the first installment for the acquisition of a larger area, but already under a new loan agreement. The situation can be different. If, after a certain period of time, the client of the bank that received the mortgage can not continue to pay the loan, then the buyer is also looking for this real estate. Then the contract on transfer of a debt is made out, but only with the consent of bank. The buyer has the right to purchase real estate, but it is his responsibility to repay the debt to the bank, in other words, he becomes his debtor.

There are situations where a home buyer does not have the amount that is required to purchase a larger living space, and is also going to take a mortgage. This procedure is more complicated, since the bank will need to approve its candidacy, assess its financial capabilities, so that loan repayment guarantees are preserved.

We alienate the property from the bank

If the borrower has insurmountable circumstances that do not allow making payments in full, the bank is primarily interested in going to him for a meeting on the issue of realizing residential real estate. If the buyer for housing has not yet been found, the institution offers its client a reliable and trusted partner in order to carry out the transaction. However, the borrower should well understand how to sell an apartment, burdened with a mortgage. This is a non-standard transaction, so it can lead to a decrease in the selling price of housing.

The bank is interested in the fact that the loan was repaid, and there were no overdue payments. If the borrower for a number of reasons can not repay the loan, but agrees to pay it off due to the sale of the apartment, the financial institution, as a rule, forecloses. This happens out of court.

Sell an apartment in a mortgage is possible provided that settlements with the buyer will be conducted through the bank and under the supervision of a loan officer. Such an order of alienation of property in pledge is described in detail in the law on mortgage.

Encumbrance of an apartment with a mortgage imposes some restrictions on the disposal of this legal right.

Looking for buyer

If you want to sell an apartment purchased on a mortgage, you must obtain the consent of the bank. Once you have secured his approval, you must choose the optimal sales scheme.

Consider the possible ways of selling

There are two options for conducting such transactions. Which is most suitable in your case - the bank, the buyer and the seller will decide. The methods differ significantly from each other. It is very important, when and under what conditions the pledge will be withdrawn from the real estate - before the registration of the property rights or after it.

In the first situation, the bank gives its consent to replace the owner, and then relieves the encumbrance. As a result, for some time, the pledgor is the new owner of the apartment - the buyer. He puts the money in two cells in the depository. In one, the amount that is equal to the balance of the debt to the bank is kept, in the other - the remaining part. Operations with cells are conducted under the supervision of a bank employee. After registration of property rights, the same employee withdraws from the "own" cell the balance of the debt and hands the buyer a document on the removal of the encumbrance. The money from the second cell is received by the seller of the apartment. This concludes the deal.

Is it possible to sell an apartment bought in a mortgage in another way?

Yes, there is another version of such a deal. In the second case, the borrower deposits the remaining debt in his bank account, as well as the accrued interest on the current loan. This is done in order for the financial institution to write off this amount and issue a letter to the borrower stating that its obligations to it have been fulfilled and that the encumbrance with the housing has been lifted.

To do this, the seller can draw up a contract for the sale of apartments (preliminary version), after which the buyer will give the borrower the amount necessary to close the mortgage. In turn, the borrower will deposit money into his bank account before submitting relevant documents for registration of property rights. To hand over all the necessary papers for the removal of the encumbrance and to register the contract of sale is possible in one day.

The transaction is rare, but possible

On the question of whether it is possible to sell an apartment purchased in a mortgage, bank employees usually reply that this transaction is more complicated than usual, but it is possible. The period after which it is possible to implement it is established by the bank.

Today, there are three ways in which you can sell an apartment purchased on a mortgage. The first option - an independent sale. It implies the transparency of the transaction and the obligatory consent of the creditor bank to it. After the agreement is received and the amount of the loan debt is finally determined, an agreement is concluded with the buyer. It must be notarized. Then the buyer pays the bank-creditor the amount that the seller owes. After that, he gets a receipt and a document on the absence of debt.

In this period, the seller must officially register the removal of the encumbrance with the relevant authority and the transfer of ownership of the apartment sold. A sale contract must also be registered. The difference in the funds between the amount of the debt to the bank and the price of the apartment is stored in a bank cell that has certain conditions for access.

The second option is to sell the loan. It is different subject of sale. They are a mortgage loan. To do this, you will also need the consent of the creditor bank. In this case, he has the right to approve (or not approve) the candidacy of a new borrower. Only then the credit is reissued.

An agreement is made to transfer the debt to the buyer who accepts the obligation to repay the debt. In this case, the apartment still remains pledged to the bank. In addition, one financial institution can borrow a loan from another (refinancing). But such operations, as a rule, they do reluctantly, due to the fact that they are not interested in losing their clients.

Option three - unofficial

This is a questionable method in all respects. To implement it, you need to find a buyer who wants to repay the loan ahead of schedule. It is quite difficult to find such a person. In addition, in this case, the mortgage loan must be repaid ahead of schedule and without penalties. If you do not know how to sell a house in a mortgage, then you need to consider that the transaction will take place the same way as with the apartment.

Other issues related to the sale of a mortgage apartment

Quite often people get many problems with obtaining long-awaited housing. Basically, they are associated with a change in living conditions, loss of work, inability to repay a loan. For example, many are interested in the question of whether it is possible to sell an apartment on a military mortgage. Such a transaction is possible, but with the consent of the creditor bank and the Ministry of Defense.

Today you have learned whether it is possible to sell an apartment bought in a mortgage. We hope that the information obtained will help you conduct such a transaction correctly.