Can You Sell a House With an Existing Mortgage? Here’s What You Need to Know

Most people who buy a house use it. subscriberThus having to return the amount financed by the credit institution for the entire duration of the installments. Since paying off a mortgage takes many years, and often even decades, it is not easy to know what to do if the need arises in the meantime. sell the house.

The reasons are very different. Sometimes a larger home is needed due to an expanding family or a desire to include a studio or dedicated work area. It is not uncommon for people to want to sell a house without buying another, perhaps because they want to invest the money in another way or because they plan to move abroad. The reason is not important in terms of the procedure, which only differs in two elements:Buy a new house Whether it is possible or not Mortgage payment.

Sell ​​a house with an existing mortgage

You can sell your house with an existing mortgage

Many wonder if this is possible. Sell ​​the house and the mortgage is still outstanding. The answer is yes. In fact, the law does not prohibit selling the house while the loan is being paid, much less prohibiting the credit institution from doing so.

The bank will not be able to prevent the client from selling the property for which the mortgage is paid (except in specific cases), as long as payment of the debt is guaranteed. In other words, you can sell your home with the mortgage in place as long as payments are made and maintained. a guarantee For the institute.

This represents a guaranteeMortgage loan This protects the bank from possible defaults. In theory, selling a house with a mortgage is perfectly legitimate, but it is clearly a risky option. In fact, there are not many buyers willing to do this, because they would be assuming the risk. Be deprived of property In case of non-payment by the seller. To solve this problem there are different solutions, including alternatives to mortgage repayment and, therefore, simpler ones.

Cancer, chemotherapy, alopecia, trichotillomania and other patients

Early mortgage repayment

After exchanging the escrow, the easiest way is to sell the house (without a mortgage).Mortgage paymentOr the remaining balance of the debt with the credit institution. to’Prepayment is the fastest solution to sell a home, but it is often impossible to implement due to lack of liquidity.

But, in reality, it is possible to pay off a mortgage without incurring the full expense. This is possible when the quantity is obtained as making progress or a deposit from the buyer (for example in the context of an agreement) sufficient to settle the debt; Otherwise, it is also possible to stipulate an agreement with the buyer to pay the agreed amount Directly to the bank. The middle way is the balance paid by the seller. Contextuality of the verbSubject to agreement with the buyer.

This way you sell the house and maybe get… difference The buyer does not run any risk of the cost, since he makes the payment personally. However, the buyer may not be able or may not consider it appropriate to pay in this way (as he will have to pay the full amount in advance). The only solution).

Sell ​​your house without paying the mortgage

If the owner or buyer cannot pay the loan, there is another possibility:Assumption of mortgage. In fact, the buyer can assume the existing mortgage and pay the remaining payments, including interest.

In this way the sale is facilitated by the fact that the buyer is directly responsible for the debt and the responsibility for performance. On the other hand, the seller must receive the remaining amount according to the agreed sales price.

This is possible when the buyer is willing to accept all the terms of the original contract and the bank accepts the assumption, after evaluating the contract. Bankruptcy risk. Obviously, the easier it is to get approval from the lender, the lower the value of the loan. Remaining debts Left by previous owner.

Home sale with mortgage and first home bonus

As mentioned above, the bank has the final say in replacing the collateral and assuming the mortgage, and the conditions for early repayment are also stipulated in the contract. However, the lender cannot pre-reject the sale of the home with the existing mortgage, unless the property is purchased with it. First home bonus And less than before 5 years.

Only those who can sell the acquired property before 5 years have passed. During the first year Received or purchased a Other property With similar characteristics, for use as a first home. However, in this way you lose the right to the benefits provided.

Bridge mortgage for moving

Another way to sell a property is through subsidies. Block Loans, also known as a “move house” mortgage. This is exactly the loan intended forbuy another houseUseful when trading hours do not coincide and the client does not have the necessary liquidity to make the purchase.

A bridging loan can therefore be very useful, but it is still subject to acceptance by the credit institution (which is still not common in Italy) and is often subject to conditions. Interest rates High, due to its short duration. A bridging loan can be convenient because it allows you to purchase the property without missing out, while also giving the bank the chance to replace the collateral or have more time to continue the loan process. sale.

Sell ​​a home with a joint mortgage

All the rules relating to the sale of the house with the existing mortgage and in general with any other type of operation on the property also apply when The mortgage is entered into jointly, provided that there is Consent of all owners..