The mortgage loan “allows us to have a significant amount of money, usually, to buy a home or rehabilitate it”, as explained by the Bank of Spain (BdE). This credit will be granted by the lending entity in exchange for it being returned in the long term, paying a series of interests.
Finishing paying the mortgage is the dream of any homeowner, since the debt with the bank will be paid off after years and years. At this point, after paying the last loan installment, the mortgage must be canceled at the Property Registry. “This is the case in most cases, when the mortgage guarantee falls on a single property, such as our home,” says the BdE.
But what happens if, as collateral for a loan, several properties or properties have been mortgaged? The loan with mortgage guarantee is one in which, for its granting, the applicant puts a house that he or she owns as payment guarantee. In this way, in the event that the mortgage payments cannot be met, the bank will be able to exercise its right to keep this asset and recover the money. From the BBVA blog they assure that this is a formula used in banking to ensure financial operations, for example, in loans when “the applicant’s profile does not offer all the necessary guarantees that they will be able to return the money borrowed.”
For its part, the BdE assures that “in these cases, if a single mortgage has been agreed on all the properties, it is not possible to release only one of them, even if the mortgage charge corresponding to that property has been fully paid. unless we propose it to the entity and it agrees to the request.”
In addition, this entity gives an example to make it clearer. A person applies for a mortgage loan with the guarantee of their primary home and a second home. Even if an amount of the loan that exceeds the guaranteed value of that second home has already been paid, it cannot be left free of charge until the entire mortgage loan is paid, unless the entity agrees to this.
“The mortgage is indivisible and the distribution of the mortgage responsibility between each property only determines the maximum amount of capital, interest, costs and expenses for which each of them can be executed,” says the BdE.
2024-03-08 15:17:33
#properties #mortgaged #collateral #loan
