The concept of “mortgage” has been around for a long time, and everyone knows its meaning. The cost of housing is constantly growing, so a mortgage is one of the most reasonable ways to solve the housing problem. However, situations arise when a mortgaged apartment needs to be sold. How to sell an apartment with a Sberbank mortgage? What are the risks for buyers and sellers of such housing?
Mortgage real estate can be sold for the following reasons:
When a home loan borrower becomes unable to pay, in most cases the only reasonable solution is to sell the mortgaged apartment and buy a smaller one. To carry out a transaction of this type, you must first obtain permission from the bank where the home loan was issued. As a rule, the bank is interested in timely repayment of the mortgage and avoiding delays. Therefore, the bank usually assists in the sale of mortgaged real estate in order to prevent possible debt.
Realtors have long known that mortgage real estate transactions account for more than 50% of all transactions. To conduct a transaction, you must obtain permission from a credit institution, in our case, Sberbank of Russia. In this case, the bank will have to reimburse in full the costs it incurred as a result of issuing loan funds to the borrower, and partially lost profits.
How to sell an apartment with a Sberbank mortgage? There are 3 ways to complete a transaction:
The sale of an apartment with a mortgage involves the collection of:
In addition, permission from the guardianship authorities may be required if one of the owners is a minor. You will also need an extract from the Unified State Register indicating the current state of encumbrances and all owners.
The Bank has the right to additionally request:
The procedure for selling an apartment that is mortgaged by Sberbank consists of the following stages:
Selling an apartment with a Sberbank mortgage is a rather long procedure, especially when it comes to early repayment of a housing loan. Sberbank does not consider dubious schemes, so it mainly offers to act according to the algorithms it has developed. Thus, the sales procedure will be individual in each specific case. It is important to note that Sberbank is reluctant to reissue a mortgage in any way.
If the home loan was taken out against maternity capital, the transaction will look somewhat more complicated. The child for whom funds have been allocated from the state budget must be 3 years old. Only in this case can you sell your home in order to buy a new one with the proceeds. This can be either other, including mortgage, real estate in new buildings, or on the secondary market.
The seller must obtain written permission from Sberbank to sell the home. This document specifies the terms of the transaction (for example, payment of a commission). After this, you can begin to pay off the current debt and submit documentation to Rosreestr to clear the record of the existence of an encumbrance and at the same time to re-register ownership. In addition, the apartment can be sold if there is an encumbrance, and the loan is repaid after state registration of the agreement. Then you can begin to remove the collateral.
If the apartment has been owned for less than 3 years
The procedure for selling an apartment that has been owned for less than 3 years is no different from the above algorithm. The only difference is that the seller needs to pay income tax. But if you purchase new housing of greater value, you can get a tax deduction and return 13%. If a new apartment of lesser value is purchased, no deduction is paid.
Recently, an increasing number of married couples are deciding to divorce. In this case, the former spouses must divide the property acquired during the marriage, but also joint debt obligations. How to sell an apartment with a Sberbank mortgage during a divorce? There are two schemes.
Often, owners of mortgaged apartments who want to sell such housing attract real estate agencies. How to sell an apartment with a Sberbank mortgage in this case? First you need to find out the possible options for selling real estate to a bank. After this, you need to contact a realtor who will directly search for buyers and collect the documents necessary for the transaction. The agency will take a considerable commission for its services, but the sales process will speed up significantly. The method of selling a mortgaged apartment with the participation of a realtor is suitable for those owners who want to get rid of such housing as soon as possible.
Transactions with real estate purchased with borrowed funds are risky, primarily for the buyer. If the seller turns out to be dishonest, the buyer will not be able to purchase an encumbered apartment; accordingly, he will be denied a loan and will not receive the desired apartment. Unfortunately, situations arise when sellers falsify documents. In addition, the buyer may be faced with the lack of necessary documents or their inconsistency with the bank’s requests from the seller for re-registration of real estate. If the owner is a minor, the guardianship authorities may prohibit the sale of housing.
Let us remind you that the procedure for selling a mortgaged apartment is completely controlled by the banking institution at all its stages. The bank is most interested in the success and transparency of the transaction. An important role here is played by such a factor as the buyer’s solvency, since if this parameter does not meet the bank’s requirements, the mortgage will not be reissued.
The seller should be careful when making mutual payments with the buyer and not get involved in various “gray” money transfer schemes, which are quite often implemented by scammers. There is a risk that the sale will fail. However, if an unscrupulous buyer is identified, this will help the seller avoid serious problems in the future. Remember that scammers can also mislead a bank employee. However, the insurance service also participates in the transaction on the part of the bank, whose responsibility is also to verify the legality and legality of the transaction. The shadow scheme will thus be revealed.
In this regard, the biggest risk for the seller is a waste of time if the buyer is refused a home loan.
Selling mortgaged properties is not uncommon these days. Situations when a borrower can no longer repay his debt occur frequently. The only reasonable solution is to sell the mortgaged home. How to sell an apartment purchased with a Sberbank mortgage? First of all, you should obtain consent from the credit institution to sell such an apartment and find a buyer. After this, you can begin to complete the transaction. There are two main options - the buyer pays off the mortgage or the home loan is reissued for him. Another way is to convert a mortgage into a consumer loan. However, mortgage real estate transactions are risky for both buyers and sellers.
Selling real estate purchased under a mortgage and secured by a banking institution is quite difficult. Even if a buyer is found, the apartment owner is able to benefit from such a sale only in some cases, because in most cases he “breaks even” or incurs minor losses. In addition, many difficulties may arise, both during the approval period and during the execution of the transaction.
But what to do if you really need to sell your mortgaged apartment?
And you also want to do this profitably, and not at a loss for yourself?
Although selling an apartment with a mortgage is not so easy, there are ways in which this can be done:
Repayment of the entire loan amount
This is the easiest and fastest method of selling a mortgaged apartment. However, to do this, you must first find a buyer who has enough funds to cover the debt. In this case, the buyer repays the loan in full, after which the banking institution issues him documents confirming the fact that the mortgage has been withdrawn. These documents allow the buyer to carry out subsequent transactions. If he buys a finished apartment, a sales contract is signed. In cases where real estate is purchased and is under construction, the equity participation agreement with the developer company is renewed.
This method is the easiest for the buyer, but for the seller it can be very risky. In most cases, the procedure for processing documents by the bank takes 2-3 months from the date of loan repayment, and the buyer does not receive property rights to the property. There may also be problems with government agencies, as they may refuse to register the transaction.
In such situations, safety deposit boxes are used to reduce risk: after the purchase and sale agreement is drawn up, money and documents intended to remove the mortgage encumbrance are placed in one box, and money intended for the seller is placed in another box. After repaying the debt, the buyer takes the documents from the first cell, and the seller takes his part of the money when transferring ownership rights.
Change of borrower
You can sell an apartment with a mortgage using this method by replacing the contract. However, this will require the consent of the bank. In this situation, the buyer assumes the credit obligations of the seller. The bank’s task in this case is to check the financial condition of its borrower.
If the apartment being purchased is under construction, the banking institution may offer the buyer to borrow funds to pay off the seller’s debt. This method is suitable if the new building was registered under an equity participation agreement.
To sell real estate with a mortgage that is under construction, you need to provide the bank with a statement that you are going to sign an assignment agreement and permission to re-register the agreement issued by the developer. The banking institution reviews the documents within three days, after which it makes a decision.
Selling an apartment with a mortgage is a very complex procedure that requires certain knowledge and experience. It is very difficult to do it on your own. Therefore, in order to profitably sell real estate in Moscow that is under a mortgage, contact our real estate agency “City Real Estate Service”. Thanks to extensive experience, our specialists know how to protect the interests of each party, protect them from unpredictable situations and make sure that both the seller and the buyer are completely satisfied with the transaction.
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Contact us, we will free you from the problems of selling real estate with a mortgage!
Welcome! Is it possible to sell an apartment with a mortgage and how to do it correctly? Today we continue to answer questions from our readers and in this post we will talk about whether it is possible to sell an apartment purchased with a mortgage, how to sell an apartment with a mortgage, and you will also learn all the nuances when registering an apartment through a mortgage.
There are several reasons for selling an apartment that still has a mortgage:
An apartment with a mortgage is the bank's collateral, so in order to sell it, you must obtain permission from the financial institution that issued the loan to you. If you don’t know how to sell a mortgaged apartment, first find out whether the bank will give you permission to do so.
Firstly, the bank benefits from the sale of the apartment with a mortgage and, accordingly, the full repayment of the mortgage debt on your part, so it is unlikely to prohibit such a transaction if you can no longer repay the loan.
But, secondly, if the bank sells your mortgaged home and repays the mortgage, it will lose its interest, and this may be a reason for refusal. The bank can also refuse if you have violated its rights to the collateral property - for example, you have carried out redevelopment of the mortgage.
You can be one hundred percent sure of the bank’s consent if the sale of a mortgaged apartment is specified in your loan agreement, but this is rare.
But no difficulties in pre-selling an apartment with a mortgage can be compared with the possible litigation that will certainly arise if you simply stop paying monthly rent. Therefore, if you can no longer afford large monthly payments, sell the apartment that is under mortgage as quickly as possible.
There are 4 most common ways to sell an apartment with a mortgage:
The bottom line: you independently raise money in the amount of the remaining debt to the bank, and pay it off. After which you remove the encumbrance and can safely sell your property. To repay a loan, you can use it if income allows, because when calculating solvency, current obligations will be taken into account.
You can quickly and legally close your mortgage and remove the encumbrance for sale
The bottom line: you find a buyer who agrees to buy an apartment taken on a mortgage. The buyer provides you with an amount with which it is possible to repay your debt ahead of schedule (a receipt is issued to the buyer for this amount). The borrower selling the apartment makes an early repayment and closes the loan. Then he removes the encumbrance and sells the apartment to the buyer (a mortgage for the balance is possible).
The bottom line: a real estate agency issues a loan to the seller in the amount of the loan balance. After this, the mortgage encumbrance is removed from the apartment and the apartment is sold.
The bottom line: for a buyer who can buy out a mortgaged apartment through a mortgage, there are special programs in banks. The potential borrower provides a standard package of documents and waits for approval of the application for the specific apartment that has already been found, which is in lieu of the same bank. Next, a loan is issued to the buyer and simultaneous repayment of the seller’s debt to the bank, and after that the transaction is registered in justice.
Now you already know the answer to the question: is it possible to sell a mortgaged apartment on credit? Yes, this can be done and there are four options for how to do it. Next we will look at the step-by-step instructions , how to sell an apartment purchased with a mortgage using bank borrowings.
A common way to sell an apartment to an insolvent borrower is through refinancing - that is, the bank sells the collateral apartment. Average market conditions for the sale of such real estate are as follows:
Standard package of documents for the application:
At the same time, we must not forget that the bank may at any time require any additional documents from you.
How to sell an apartment with a mortgage on credit? You can apply for a loan for collateralized real estate at any branch of the bank of your choice. To do this, the buyer needs to perform the following algorithm of actions:
How does the sale take place in this case? If you do not repay the loan for a long time and do not restructure such debt, the bank can take away the apartment from the borrower and independently sell it in accordance with the law.
There are two options:
Is it possible to sell an apartment purchased with a mortgage for good money? Considering the fact that buyers in the real estate market do not like apartments with encumbrances, it is quite logical that collateralized real estate costs much less than any other. Experts note that the difference can reach 25%.
The value of the collateral property is determined by the bank and is guided in this matter by the following factors:
It is important to understand that, as a rule, banks use the services of a realtor when selling their collateral real estate for cash. The amount for which an apartment with a mortgage will be sold is largely determined by his professionalism.
Practice also proves that a mortgaged apartment in good condition and with excellent characteristics can be sold for the full market value, and if the apartment was bought in a new building and at the time of sale it is fully equipped, even more expensive than its original cost. This can be beneficial, for example, for selling an apartment during a divorce.
The bank's requirement to sell the collateral apartment contains opportunities for the borrower to avoid this. There have been cases when a borrower was forced to put his apartment up for sale and deliberately inflated its value so much that it simply could not be sold. This time was enough for the borrower to restore his financial position and continue to pay his mortgage properly and regularly.
However, all this applies only to those cases when the sale of an apartment with a mortgage is carried out voluntarily. In some cases, when it is impossible to obtain a sale from the borrower from the bank, the financial institution can take back its collateral in court.
In this case, the apartment will go under the hammer and much cheaper than it could have been sold. And if the bank’s expenses for such proceedings are not covered after the sale of the collateral real estate, then the bank will have every right to collect the balance of the debt from the borrower, even with the help of the court.
Don't take things to the extreme. There would be a desire to be able to pay off the debt. You may not have heard, but it exists. State support reaches 1.5 million rubles. Read more in our previous post.
But maybe you don't want to sell your home, but you're having a hard time paying off the debt. One of the ways to keep an apartment as collateral from the bank, for which it is no longer possible to pay the mortgage, is. Typically, it is provided on a targeted basis. If these conditions suit you, you can apply for it in the following few steps:
Thus, you receive maternity capital funds not in parts, but in whole.
Naturally, such operations seem quite risky to buyers - anything can happen. If the advantages of buying an apartment with an encumbrance are obvious (low price, mortgage interest is much lower), then you need to pay attention to the disadvantages.
Purchasing real estate under a mortgage:
Firstly, repaying the mortgage debt for the seller of the apartment is quite risky for the buyer. If it is not documented in any way that the buyer has any rights to the apartment, then the seller can simply use his prepayment, remove the encumbrance from the apartment and use it at his own discretion - the deposit has been removed, he can make absolutely any transactions with it. Therefore, the buyer can protect himself only if he cooperates not with an individual, but with a bank or agency.
Secondly, re-registration of an apartment if it has a mortgage and removal of the encumbrance from it entails additional costs for the buyer.
Third, the buyer should not pay the money owed to the borrower before their deal is approved. After all, it may turn out that the seller is prevented from taking his money by a financial institution due to a refusal to accept the transaction. Perhaps this risk is beneficial for the buyer - he can legally take both the funds and the purchased apartment for himself, but this situation entails inevitable proceedings.
When selling an apartment with a mortgage, the seller’s risks usually include:
If you have difficulties with such a transaction and you need to sell or purchase your own home under a mortgage, we recommend that you first consult with our lawyer. Ask him a question in a special form. There is currently a free promotion.
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Unfortunately, none of us are immune from sudden job loss, unexpected illness or addition to the family. Both sad and joyful events can happen in life. And even such desirable housing purchased on credit will soon become burdensome or unnecessary.
Is it possible to sell an apartment purchased with a mortgage? We'll try to figure this out today.
Employees of lending banks often hear from their borrowers: “I want to sell an apartment with a mortgage, but I don’t know where to start.” The sale of an apartment that is pledged to a bank is still a rare phenomenon for our compatriots. However, such cases have already occurred in modern banking practice. For example, a borrower purchased an apartment with a mortgage, carefully paid current payments, but then, due to some circumstances, he needed a larger home. In this regard, he is looking for a buyer for his living space with the help of a realtor or on his own.
The proceeds are used to repay the loan, and the remainder becomes the first payment when purchasing a larger living space, but under a new loan agreement.
The situation may be different. If, after a certain period of time, a bank client who has received a mortgage cannot continue to repay the loan, then a buyer is also sought for this property. Then an agreement is drawn up but only with the consent of the bank. The buyer has the right to purchase the property, but he is obliged to repay the debt to the bank, in other words, he becomes its debtor.
There are situations when a home buyer does not have the amount necessary to purchase a larger living space and is also planning to take out a mortgage loan. This procedure is more complicated, since the bank will need to approve his candidacy and assess his financial capabilities so that the loan repayment guarantees are maintained.
If the borrower has insurmountable circumstances that do not allow him to make payments in full, the bank is primarily interested in meeting him on the issue of selling residential real estate. If a buyer for housing has not yet been found, the institution offers its client a reliable and trusted partner in order to complete the transaction. However, the borrower must understand well how to sell an apartment encumbered with a mortgage. This is a non-standard transaction and may result in a reduction in the sale price of the home.
The bank is interested in ensuring that the loan is repaid and that there are no overdue payments. If the borrower, for a number of reasons, cannot repay the loan, but agrees to repay it by selling the apartment, then the financial institution, as a rule, forecloses on the collateral. This happens out of court.
Encumbering an apartment with collateral imposes some restrictions on the disposal of this legal right.
If you want to sell an apartment purchased with a mortgage, you must obtain the bank's consent. Once you have secured his approval, you need to choose the optimal sales scheme.
There are two options for conducting such transactions. Which one is most suitable in your case will be decided by the bank, buyer and seller. The methods differ significantly from each other. It is very important when and under what conditions the mortgage on real estate will be removed - before or after registration of property rights.
In the first situation, the bank gives its consent to replace the owner and then removes the encumbrance. As a result, for some time the mortgagor is the new owner of the apartment - the buyer. He places the funds in two safe deposit boxes. One stores an amount that is equal to the balance of the debt to the bank, the other stores the remaining part. Operations with the cells are carried out under the control of a bank employee. After registering property rights, the same employee removes the balance of the debt from “his” cell and hands the buyer a document on the removal of the encumbrance. The seller of the apartment receives the money from the second cell. This completes the deal.
Yes, there is another option for a similar deal. In the second case, the borrower deposits the balance of the debt into his bank account, as well as accrued interest on the existing loan. This is done so that the financial institution writes off this amount and issues the borrower a letter stating that its obligations to it have been fulfilled and the encumbrance on the property has been removed.
To do this, the seller can draw up an agreement for the sale of the apartment (preliminary version), after which the buyer will transfer to the borrower the amount necessary to close the mortgage loan. In turn, the borrower will deposit funds into his bank account before submitting the relevant documents to register property rights. You can submit all the necessary papers to remove the encumbrance and register the sales agreement in one day.
When asked whether it is possible to sell an apartment purchased with a mortgage, bank employees usually answer that this transaction is more complicated than usual, but it is possible. The period after which its implementation is possible is set by the bank.
Today there are three ways in which you can sell an apartment purchased with a mortgage. The first option is independent sale. It implies transparency of the transaction and mandatory consent of the creditor bank. After consent is received and the amount of debt on the loan is finally determined, an agreement is concluded with the buyer. It must be notarized. The buyer then pays the creditor bank the amount owed by the seller. After this, he receives a receipt and a document confirming the absence of debt.
Within the specified period, the seller must officially register the removal of the encumbrance with the relevant authority and the transfer of ownership of the sold apartment. The sales contract must also be registered. The difference in funds between the amount owed to the bank and the price of the apartment is stored in a bank safe deposit box, which has certain access conditions.
Option two is to sell the loan. It differs in the subject of sale. This is a mortgage loan. This will also require obtaining the consent of the creditor bank. In this case, he has the right to approve (or not approve) the candidacy of the new borrower. Only then does the loan re-issue.
An agreement is drawn up to transfer the debt to the buyer, who accepts the obligation to repay the debt. In this case, the apartment remains pledged to the bank. In addition, one financial institution can buy a loan from another (on-lending). But they, as a rule, carry out such operations reluctantly, due to the fact that they are not interested in losing their clients.
This method is dubious in all respects. To implement this, it is necessary to find a buyer willing to repay the loan ahead of schedule. Finding such a person is quite difficult. In addition, in this case, the mortgage loan must be repaid ahead of schedule and without penalties. If you don’t know about a mortgage, then you need to take into account that the transaction will take place in the same way as with an apartment.
Quite often, when obtaining long-awaited housing, people also encounter many problems. They are mainly associated with changes in living conditions, loss of work, and inability to repay a loan. For example, many are interested in the question of whether it is possible to sell an apartment with a military mortgage. Such a transaction is possible, but subject to the consent of the creditor bank and the Ministry of Defense.
Today you found out whether it is possible to sell an apartment purchased with a mortgage. We hope that the information received will help you carry out such a transaction correctly.
There is an opinion that an apartment with a mortgage cannot be sold. In fact, this opinion is wrong. Selling an apartment is difficult, but it is possible.
Why sell a mortgaged apartment? Mortgage loans are taken out for long terms - up to 30 years. A mortgage borrower is not a slave, not a serf, living in one place all his life. During the term of the mortgage, a person’s circumstances may change: for example, a larger or smaller apartment will be needed due to a change in family composition, or the financial condition of the borrower will change - both for the better and for the worse. Or maybe the borrower would like to live in a more environmentally friendly area or closer to the city center. There are a lot of options... So what should you do?
If desired, the apartment owner can take out a consumer loan or borrow money from family and friends and pay off the remaining debt to simplify the sale procedure. In other cases, the borrower will choose to replace the collateral.
Let's take a step-by-step look at selling an apartment with an encumbrance.
Step one. Obtaining permission from the bank. Article 37 of Federal Law No. 102-FZ “On Mortgage” states: “Property pledged under a mortgage agreement may be alienated by the mortgagor to another person by sale or otherwise only with the consent of the mortgagee, unless otherwise provided by the mortgage agreement.” Banking agreements, as a rule, do not provide otherwise. Even if you try to sell an apartment without notifying the bank, you still cannot bypass the registration of ownership rights to another owner in Rosreestr. And there the bank’s rights to this collateral are indicated, and the organization will simply reject this request.
When reselling an apartment under construction under an assignment agreement, permission from the developer will be required, which is usually paid.
Step two. Finding a buyer and agreeing on the terms of the transaction. Buying an apartment with a mortgage, as it happens, confuses people. Nevertheless, you can agree with the buyer, as an option - to knock off a little from the cost of the apartment.
Depending on whether the buyer has funds equal to the cost of the apartment or needs a mortgage loan, the sale transaction is carried out differently.
Step three. Deal. If the buyer has the full amount, it is divided into two parts. The first part, in the amount of the remaining balance on the loan, is sent for full early repayment of the loan, and the second is deposited in a safe deposit box with certain access conditions. After this, documents to remove the encumbrance and re-register the property to the new owner are submitted to Rosreestr. Upon the return of documents from Rosreestr, the buyer receives the housing and the rights to it, and the seller receives the difference between the price of the apartment and the mortgage amount that was pledged to the cell.
If a buyer purchases a home with the help of a mortgage, the seller, after completing the registration steps, receives money from the bank that issued the mortgage to the buyer into an account or from a safe deposit box. Important: The buyer will have to obtain a loan from the same bank as the seller’s loan. In practice, it is almost impossible to do otherwise due to the complexity of the transaction of transferring a secured loan to another borrower to another bank.
Form of agreement. For secondary real estate, everything is simple: a purchase and sale agreement is drawn up between the seller and the buyer. When reselling an apartment under construction, purchased under an agreement of shared participation in construction, an agreement for the assignment of the right to claim under the agreement of shared participation in construction is drawn up. Moreover, such an agreement can be concluded before receiving the keys and signing the acceptance certificate. After receiving the keys and before registering ownership rights to the constructed housing, the so-called dead period begins, when no real estate transactions are carried out. After receiving ownership rights, a full purchase and sale agreement is concluded.
For any real estate purchase and sale transaction, it is true that there are different options for its implementation, specific risks and difficulties, and many nuances. Therefore, banks often accommodate a borrower who has decided to sell an apartment and help with the transaction, but not without their own commission.
Dear users, write in the comments what burning questions about mortgages and other banking products you would like answers to! My colleagues from Banki.ru and I will try to answer them.
