How to sell a mortgaged house

If the house you want to sell still has a mortgage, it gives the lender a right of “sequelai” on the property. That is, it continues to tie up the property even where the debtor transfers ownership of the property to another. Those who boast credits therefore retain the right to expropriate and to satisfy themselves on the profit of a forced sale

Then how does it come out?

There are two paths that can be taken: pay off the debt for which the mortgage is a guarantee or find a buyer willing to take on all the risk. Let’s take a closer look at both hypotheses.

Selling the house without the mortgage

The typical case is the sale of a property which still has a mortgage. It is usually resolved by canceling the debt , in order to proceed with the sale without limiting formalities.

It will be sufficient to ask your credit institution for the exact calculations for the extinction of the loan on the date set for the notarial deed and, at that time, proceed with the balance of the amount due by cashier’s check or bank transfer.

Some recommendations:

  1. Check first how long it takes to make the calculations. It may seem incredible, but some banks need more than 30 days just to give you the statement.
  2. Ask if the check or wire transfer should be made out to you or directly to your bank.
  3. Make sure that an official intervenes at the deed to collect it . Only in this way will you obtain in return the formal declaration of commitment from the bank for the automatic cancellation of the mortgage, at no cost to you (the so- called Bersani release ).
  4. When completing the preliminary agreement, declare your obligation, through the lending bank, to cancel the mortgage together with the final deed, in accordance with the law. In this way the buyer will pay you the agreed deposit without any worries about it.

Selling the house and keeping the mortgage

In theory, the mortgage is not an obstacle to the sale of the house .

In fact, this act does not affect the third creditor. We have already mentioned that the mortgage is a guarantee that “follows” the property and not the person who took it out .