It is quite common for homeowners to finish paying their mortgages and not carry out the registration cancellation of the loan. This process has a cost and, therefore, some people decide to leave the process for later. What many do not know is that, if at some point they want to sell the property, they will be forced to do so., since it is not possible to transfer a property with loads. ¿? The price will depend on the way you decide to do it and even on the moment. We explain it below.
1. Cancel with the bank at the time of selling the house
If we put our house up for sale and find a buyer without having paid off our mortgage, the bank of this will force us to do the cancellation process with your agency so that the house can be sold free of charge.
Related articles that might interest you:
This is a convenient way to cancel the mortgage, since the bank is responsible for carrying out all the procedures for us, but in return we will have to pay a lot of money for it. Banks often ask vendors for very high provisions of funds to be able to meet the costs of notary and registration and, in addition, they charge hefty fees.
How much are we talking about? If we break down the expense, a bank can charge us about 500 euros for the notary, about 300 euros for the Registry and up to 300 euros more for fees, which makes the cost of cancel the mortgage with a bank can shoot up to 1,100 euros.
2. Cancel with an independent manager or on your own before selling
Now if we decide make the cancellation of the mortgage before selling, we can have greater control over the process and it will be possible for us to choose other ways to do it that are less expensive and that do not require us to go through the bank. Which are?
We can do the cancellation process with an independent manager, that is, one that does not have a collaboration agreement with a bank and that, therefore, you can charge us less for the process in terms of fees.
For example, through HelpMyCash.com we can cancel the mortgage with an agency that can charge us about 200 euros for the notary, about 200 euros for the Registry and just about 100 euros in management costs, which represents an approximate saving of about 600 euros compared to what the bank would charge us. This with the advantage that a professional is also in charge of the procedure, so the risks of making mistakes in the process are minimized.
As well, we can choose to do the procedure on our own. In this case, we will be the ones who will have to ask our bank to issue us the zero debt certificate, ask the notary public to prepare the deed, go to collect it when it is signed by the bank’s attorney, fill out and present the IAJD and, finally, take all the documentation to the Registry so that we can lift the burden. In this way, the final cost is lower, since we save the expenses of the agency. Keep in mind that Notary and Registry expenses cannot be avoided.
In this sense, it is worth evaluating whether it is worth facing this process alone., considering that we will pay an independent agency little money in management costs (about 100 euros).
–
