Well, we must know that there are two ways to change the holder of a loan. This solution is necessary if, for example, we decide to sell the property for which we are still paying the mortgage payments. So, to the question: “Can you change the mortgage holder if you decide to sell the house?”, We will answer yes. In general, this option is provided in the loan agreement, therefore the bank could not oppose it. However, it may happen that the buyer is a person who is considered untrustworthy. This can lead to problems in changing the mortgage holder. Also, some lenders provide for the option of renegotiation or of the subrogation but not of the change of the holder. Otherwise, the two possibilities for doing so are: takeover or replacement, which have advantages and disadvantages.
First solution
The first solution to change the mortgage holder is the assumption, i.e. an agreement between the debtor and a third person unrelated to the contract. The latter, who will likely be the buyer dell’immobile, will take over the debt to the bank. So that, thanks to this replacement, the original holder is freed from the obligation to continue the amortization plan with the bank. This, however, happens in the event of a liberating takeover. Instead, in the cumulative one, both remain obliged: the buyer of the property as principal and the seller as subsidiary. Therefore, the latter will be called to pay in the event of the insolvency of the former. The advantage is that those who decide to take on a mortgage save on all the expenses related to the opening of the loan. Think of those of: expertise, investigation, notary, etc.
Can you change the mortgage holder if you decide to sell the house?
The second hypothesis in which it is possible to change the mortgage holder is that of replace financing. It is therefore a question of signing a new contract with the bank for the payment of the residual debt. In this case, however, not only the contract but also the mortgage will be canceled and replaced by a new one. Furthermore, any guarantors will be replaced. In short, in this case, we are faced with a real reconstitution of the mortgage relationship. All this, with a zeroing of the previous one, except for the residual amount to be paid. The disadvantage, however, is that, unlike the takeover, there will be all the preliminary costs of the loan to be paid again.
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