It is impossible to sell an apartment that has been encumbered by virtue of a mortgage, without the consent of the credit institution. The bank will give permission to sell housing only if its owner repays its loan in full. And this, as a rule, amounts over a million rubles, which the borrower simply does not have.
Sellers of mortgage apartments, compensating for the complexity of the transaction and attracting buyers, often have to lower the price of their property. To reduce the cost of housing sometimes accounts for 10-15%.
In this article we will look at various ways of selling apartments with burdens:
- using a bank;
- with early repayment of a mortgage loan;
- with the permission of the credit organization;
- with the replacement of the borrower-mortgagor.
Separately, we note such options under which the sellers of mortgage apartments will not need to reduce the price of their homes and lose money .
Sale of housing pledged with a bank
In the modern real estate market, the share of transactions involving mortgage loans issued by various banks is 65–70% of the total. But sometimes situations arise when an apartment bought with a mortgage needs to be sold.
If the owner of the apartment is located in another settlement or for some reason does not want to independently engage in a difficult transaction, he can issue a power of attorney to the bank and authorize him to sell his home .
The credit institution itself will find a buyer, prepare the package of documents necessary for the sale. The buyer will deposit part of the money intended for the purchase of real estate into a bank account and pay off the mortgage loan of the previous owner. The burden of the apartment will be removed.
Then the purchase transaction will be registered in Rosreestra. From the seller of the apartment will only need to sign the contract. On the transaction, he will receive a sum of money, which will make the difference between the price of the sale of housing and its debt to the bank.
The advantages of the option . If you entrust the sale of your apartment, located in a mortgage, to bank employees, this will be the easiest way for you in terms of energy, time and nerves.
Disadvantages . But, on the other hand, this method will be for you and the most disadvantageous . Bank employees are not interested in selling your apartment at the highest price possible. They only need that the amount received from the sale of housing, enough to cover the mortgage loan. The bank can sell your apartment to the first buyer. He will not wait until someone offers a higher price. You risk losing a large amount of money.
Sale of housing with early cancellation of the mortgage
You can sell the housing pledged to the bank yourself, by paying off the debt to the lender and removing the encumbrance. However, people who have a mortgage loan in the range of 2.5 – 5 million rubles, in most cases, do not have comparable cash savings. It is also unrealistic to take a consumer loan for such an amount, having a valid mortgage.
There is only one way out – to extinguish the mortgage debt with the money of the buyer .
The scheme of selling an apartment acquired through a mortgage with the early repayment of debt is as follows:
- The real estate seller finds a buyer who is interested in purchasing his apartment.
- The buyer transfers to the seller a part of the money equal to the amount of his debt to the bank, on account of the purchase of housing.
- The seller extinguishes his debt to the credit institution and removes the encumbrance from the property.
- The purchase and sale of housing is registered in Rosreestra. At this stage, the seller receives from the buyer the remainder of the money.
The advantages of the method . The owner of the apartment, having a burden, he controls the process of selling housing. He is aware of real estate prices prevailing in the market. A person can independently assess the degree of profitability of the transaction. In case of obvious infringement of his interests, he will refuse an unprofitable offer.
Disadvantages . Such an apartment purchase scheme is risky for the buyer. When concluding a preliminary contract, he will have to transfer a large sum of money to a stranger in exchange for a promise to sell housing. After the homeowner repays the debt to the bank, he can refuse to sell the property, move the terms of the transaction or raise the price of his property.
In the real estate market, you can easily find a similar apartment without burdens. The amount of the deposit, which risks the buyer, in this case will be only a few tens of thousands of rubles. Therefore, the sellers of apartments, pledged to the bank, are forced to lower prices for their homes . By this they attract buyers and compensate for their risks. This way of selling a home is often accompanied by financial losses and turns out to be unprofitable for the owner.
Sale of apartments with the consent of the bank
To sell a mortgaged apartment, the homeowner may apply to the bank with a request to give him permission to sell. The statement will need to indicate the reason why it is necessary to complete the transaction. These reasons may be:
- the inability to pay the loan associated with the loss of work or a reduction in income;
- the desire to expand the living space or change the old fund to a more modern housing;
- Moving to another city;
- change of marital status (birth of a child, divorce from a spouse).
If the bank agrees to sell the apartment, which is in his pledge, then the scheme of the transaction may look like this.
The seller finds an interested buyer and receives official consent from the bank to conduct the transaction . The parties jointly rent two safe deposit boxes from the creditor bank. In the first cell, the seller lays an amount equal to the debt of the apartment owner to the credit institution. In the second cell – all the remaining money, which he must pay the seller.
Further, the buyer and seller submit documents to Rosreestr and register the contract of sale. The future homeowner temporarily assumes the obligations of the mortgagor.
Upon completion of this stage, the seller receives the necessary documents for access to the first bank cell. He takes the money, extinguishes his loan in the bank and removes the burden from the apartment. The buyer receives the repaid mortgage, presents it to the Rosreestr, and the public authority registers the transfer of ownership.
After completing the entire procedure, the seller gets access to the second bank cell and receives the remaining amount from the sale of housing.
The advantages of the method . The transaction takes place under the control of the bank. Buyer’s money is kept in the bank box all the time. A person does not risk them, and accordingly, he has no reason to demand any price concessions from the apartment seller. The owner of the property, burdened with a mortgage, gets the opportunity to sell their housing at its market value, without financial losses.
Disadvantages . The reality of such a transaction entirely depends on the desire of the bank. The credit organization may not see sufficient grounds for selling the apartment that is in her pledge. Examples of such failures are available. And then the owner of the mortgage apartment will either be forced to abandon the idea of selling his home, or to look for a buyer who would pay off the mortgage for him with his money.
Sale of mortgage apartment with the replacement of the mortgagor
If the buyer of an apartment pledged to the bank intends to purchase housing using borrowed funds, the possibility of selling real estate arises by changing the borrower and the pledger.
In this situation, the seller – the owner of the property – turns to the bank with a request to issue permission to sell the apartment. The buyer applies to the same bank with a request to issue him a mortgage loan and indicates what kind of apartment he will purchase. The credit institution considers the buyer as a borrower in a general manner. If the bank decides to issue a mortgage loan to the buyer, then the purchase and sale transaction is made.
The bank draws up a mortgage loan to the future property owner. At the same time, the loan of the previous owner is extinguished and the mortgage is canceled. At the transaction, the seller sends the buyer a down payment. Rosreestr registers the transfer of ownership. If necessary, the bank makes a final payment with the seller (if the buyer’s contribution does not cover the difference between the cost of housing and the amount of the mortgage debt).
The advantages of this method are similar to the previous one. The transaction is made under the control of the bank. The buyer does not risk anything. He has no reason to expect additional concessions just because housing is pledged to a credit institution. The owner of the property when selling does not lose his money .
Disadvantages . The bank may refuse to conduct the transaction. And if the buyer is a client of another financial organization, this sale scheme cannot be applied either. The way out of this situation is to look for another buyer.