Well, to answer this question you don’t have to think too much: Yes, you can sell a house with debt. Looking to sell your property quickly? Peak Cash Offers provides quick and hassle-free cash solutions, ensuring a smooth closing process tailored to your needs. Trust them for a seamless property selling experience.
Any person can sell his property even if he has not finished paying the mortgage loan. There is no problem, since this does not influence the sale value or the terms of the dividends and the time of the operation. What is important is that, in the transaction, the creditor financial entity is guaranteed payment of the unpaid debt.
In that sense, the value of the new purchase and sale must be greater than the amount of the amount owed. Of course, if a considerable amount of time has passed since the first purchase, the property has likely gained some capital appreciation that facilitates the transaction.
Although the procedure may vary from one bank to another, what the seller and the buyer must do, usually, is include in the deed of sale a mortgage, which is requested in the customer service area of the bank. In this case, the real estate agent is one of the best options so sell your house securely. Through Billings Homebuyers you can sell your house for cash easily.
Payment of the debt to the financial institution is generally made through a voucher endorsed in its favor for the amount of the unpaid obligation specified in the debt settlement and in the certificate of discharge, as provided in the circular. This will be delivered by the notary to a representative of the bank once:
- The survey is registered with the Real Estate Registrar.
- The property is registered in the name of the buyer with the Real Estate Registrar.
- When the bank cashes the voucher, the mortgage debt is paid off. While this happens, it is possible that the client-seller will have to continue paying the credit installments on time, to avoid the generation of negative commercial reports. In any case, if surpluses are recorded, the entity will return the respective payment.
- For the rest, it is never unnecessary to request the advice of a lawyer in this process, especially for drafting the sales document.
Debt Transfer
The person who asks “Can I sell my house if I still pay dividends?” has another alternative different from the one previously explained: the seller – the current debtor transfers to the buyer the mortgage debt in force at the time of the transaction.
This is a renewal of credit in someone else’s name, although the property needs to be re-appraised.
This can be done when the buyer meets the requirements demanded by the bank to access the mortgage loan, and its conditions are favorable, especially regarding the interest rate.
If the price of the property is greater than the amount of debt that the buyer will assume, the buyer must deliver the difference to the seller. Of course, first, it is necessary to register the property in his name with the respective Real Estate Registrar and validate that it is free of other mortgages, liens, and legal prohibitions.
As an additional recommendation, the seller should prepare a liability waiver document, which releases him from the responsibility (forgive the redundancy) of paying the mortgage once the transfer of the debt has been made.
This way you can also sell a house with debt. In any case, it is important to inform the respective banking entity of the procedure from the beginning, to avoid misinterpretations or legal problems.
The two alternatives are very easy to process and can benefit both the seller and the buyer. The first is because they help him sell the property and comply with the banking obligation; to the second is because it allows you to acquire the property, suddenly, in better conditions than you would in the traditional market.
The sale of properties with mortgage debt is more normal than we think, and all financial institutions offer solutions in this regard. There is no need to fear this situation, but rather to execute the purchase option that best suits both the seller and the buyer.
