It is very easy to sell a mortgage property if you really know how to do it; otherwise, it will only bring difficulties. That is why today we will answer the following question: How to manage the sale of a mortgaged property?
Next, we will provide you with simple tips that will help you sell your property even with a mortgage and without much paperwork. Read to the end and if you have any questions, do not forget to tell us.
Is it really possible to manage the sale of a mortgaged property?
Yes, if it is possible to sell a property mortgaged for that reason, we want to provide you with 3 basic solutions. That have worked in many parts of the world to achieve a successful sale.
Outstanding debt passed to the buyer
As a first solution to manage the sale of a mortgaged property, we suggest carrying out a subrogation of the pending debt. With this document only the debt already acquired by the owner of the property will be passed on to the buyer.
However, the last word as to whether or not this document can be made is the bank issuing the mortgage. Since he will be in charge of studying the profile and background of the new buyer. In order to guarantee that he will be responsible for the new debt.
Debt cancellation thanks to the sale
As a second solution to manage the sale of a mortgaged property. You can go to the bank and request a pending debt certificate. This document will reflect the price for which the property was sold and the price of the debt.
If said price is above the price of the mortgage, the debt is cancelled before a notary, legalizing it. And this will make a document that informs that the buyer is acquiring a property free of debt.
Manage the sale of a mortgaged property through a bridge
The third solution to manage the sale of a property is through a bridge Mortgage through a bridge? If as you read it and it is possible. We are going to place an example so that you better understand what it is about.
Suppose you have a flat that you want to sell but it is associated with a mortgage. And you want to take out a loan to buy a new property. Maybe you feel like it would be a lot and you don’t want to sell because it would mean having two mortgages.
However, in such a situation, the bridge mortgage was created. Where the person agrees to sell the first property and pay a single unified mortgage. And when the first house is sold, the debt is cancelled and you only owe the mortgage on the house where you currently live.
Complicated? No, you just have to consult with your bank and confirm that you have this option. These operations are generally given a period of 6 months to be able to sell your property. Otherwise, you will pay the 2 mortgages.
Having answered the question before these 3 options, we saw that if it is possible to manage the sale of a mortgaged property. If you have any questions we suggest that you consult a professional in the area and thus not make any mistakes.
Remember to share this information with others if it was useful to you and we will comment on how it was to sell your mortgaged house.
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