Most people who buy a house use the mutual, thus having to repay the sum financed by the credit institution for the entire duration of the installments. Given that it takes many years, often even decades, to pay off the mortgage, it is not easy to understand what to do if in the meantime the need has arisen for sell the house.
The reasons are very disparate. Sometimes there is a need for a larger house because the family has expanded or you want to include a study or an area dedicated to work. It is not uncommon for people to want to sell the house without buying another one, perhaps because they want to invest the money differently or are planning to move abroad. The reason is not important as regards the procedure, which differs only in two elements: thepurchasing a new home or not and the possibility of pay off the mortgage.
Selling a house with a current mortgage
You can sell your house with a current mortgage
Many wonder if it is possible sell the house with the mortgage still outstanding and the answer is yes. In fact, the law does not prohibit selling the house while the loan is still being repaid, much less can the credit institution prohibit it.
The bank cannot prohibit the customer from selling the property for which he is paying the mortgage (except in a certain case), as long as the satisfaction of the debt is guaranteed. In other words, you can sell your house with the mortgage in progress as long as the installments are paid and maintained warranty for the institute.
This guarantee is represented bymortgage which protects the bank from possible defaults. In theory, selling a house with a mortgage is completely legitimate, but it is clear that it is a risky choice. In fact, there are not many buyers willing to do so, as they would risk be deprived of the property in case of non-payment by the seller. To solve this problem there are various solutions, including alternatives to repaying the mortgage and therefore more accessible.
Warranty replacement
To free the house to be sold from the mortgage due to the current loan it is possible to implement a warranty replacement. For this purpose it is necessary to submit the request to the credit institution, asking for move the mortgage on the new property to be purchased. It is necessary that the latter has a value at least equal to the residual part of the debt towards the bank.
Clearly, those who have other properties can request the replacement of the guarantee on one of these too. Thus, buyers are protected from risks, but everything depends on the response of the bank, which can refuse the replacement if deemed insufficient.
Early repayment of the mortgage
After the replacement of the guarantee, the simplest method to sell the house (freed from the mortgage) isrepayment of the mortgage, or the balance of the residual debt towards the credit institution. L’Early repayment is the quickest solution to selling the house, but it is often impossible to implement due to lack of liquidity.
In reality, however, it is possible to pay off the mortgage without bearing the entire expense. This is possible when the sum obtained as advance or deposit from the buyer (for example in the context of a compromise) is sufficient to pay the debt, otherwise it is also possible to stipulate an agreement with the buyer to pay the agreed sum directly to the bank. An intermediate route is the balance paid by the seller contextual to the deedsubject to agreement with the buyer.
In this way you sell the house, possibly receiving the difference of cost, and the buyer runs no risk, as he personally takes care of the payment. Despite this, the buyer may be unable or may not consider it appropriate to pay in this way (since he has to pay the entire sum in only solution).
Sell your house without paying off the mortgage
In the event that neither the owner nor the buyer is able to pay off the loan, there is another possibility, namely theassumption of the mortgage. The buyer can in fact take over the current mortgage and the payment of the remaining installments, including interest.
In this way the sale is facilitated by the fact that the buyer is directly responsible for the debt and responsibility for compliance. The seller, on the other hand, will have to receive the remaining amount according to the agreed sales price.
This is possible when the buyer is willing to accept all the conditions of the original contract and the bank approves the assumption, after evaluating the risk of insolvency. Obviously, the easier it is to get approval from the lender the lower the residual debt left by the former owner.
Sell the house with a mortgage and first home bonus
As already mentioned, the bank has the final say on the replacement of the guarantee and on the assumption of the mortgage, the conditions for early repayment are also provided for in the contract. The credit institution cannot, however, deny a priori the sale of the house with the current mortgage, unless the property was purchased with First home bonus and less than has passed 5 years.
Only those who can sell the property thus purchased before 5 years have passed within the first year has received or purchased a other property with similar characteristics, to be used as a first home. However, in this way you lose the right to the benefits provided.
The bridge mortgage for moving house
Another way to sell the property is the granting of bridging loan, also known as a “house move” mortgage. This is precisely a loan aimed atbuying another houseuseful when the trading times do not coincide and the customer does not have the necessary liquidity to make the purchase.
The bridging loan can therefore be very useful, but is still subject to acceptance by the credit institution (not yet common in Italy) and often subjected to interest rates high, given that it has a short duration. The bridging loan can be convenient because it allows you to purchase the property without giving up an opportunity, while providing a possible replacement of the guarantee to the bank or obtaining more time to proceed with the sale.
Selling a house with a joint mortgage
All the rules relating to the sale of the house with the current mortgage and in general to any other type of operation on the property also apply when the mortgage is jointly held, as long as there is the consent of all owners.
2023-10-20 18:44:00
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