Is it possible to sell an apartment on a mortgage and how to do it

Is it possible to sell an apartment on a mortgage

The circumstances are different. A person can buy an apartment on credit, and then decide that it does not suit him. He wants to live in another area, move to a private house, relocate to another country, get a divorce and divide property - few reasons. And he has such an opportunity, there are no direct prohibitions here.

True, it is worth remembering that housing is pledged to the bank. Therefore, the transaction will be somewhat more complicated than the usual one. It will have to take into account the repayment of debt and the removal of encumbrances.

How to sell an apartment on a mortgage

There are four ways.

1. Pay off your loan early

This method is suitable for those who have free funds or where to get them. Some even take out consumer loans to pay off their mortgages. And then they close the second loan with funds from the sale of the apartment.

From the point of view of the simplicity of the future transaction, this is the most suitable option. Which, however, may not endure the test of reality. Much depends on the amount of debt. If you have 500 thousand left to pay the bank and / or you have everything in order with income, getting that kind of money will be relatively easy. If the debt is several million, the required amount may not be approved.

In addition, the interest on a consumer loan is much higher than on a mortgage. Of course, it can be repaid with money from the transaction. But if the search for a buyer is delayed, and a new payment is uncomfortable, this can greatly affect the standard of living.

But this scheme makes the apartment more attractive to buyers. Your mortgage simply doesn't matter to them.

2. Pay off the loan early with the buyer's money

With this scheme, the future owner gives a deposit in the amount of the debt. The seller pays off the mortgage with this money, removes the encumbrance. The transaction then proceeds as usual.

The pitfall is obvious: not every buyer will agree to this method. We are talking about a rather large amount that he must give without guarantees. Of course, you will write a receipt, with which he can then go to courtto return the money. But all this does not look like an event in which you really want to participate. Therefore, such a scheme is bad in that it makes it difficult to sell an apartment.

3. Sell ​​an apartment with the mortgage paid off during the transaction

If the buyer comes with "live" money, the transaction can be carried out with the participation of the bank. In this case, a person pledges money for a letter of credit or in a cell in shares, one of which is equal to the amount of the debt. The bank subsequently takes its own, fixes the repayment of the loan and removes the burden.

This option is convenient for the seller, as it does not require him to incur additional debts. And the buyer feels more secure, since the settlements are carried out through the bank and with his participation.

4. Sell ​​the apartment together with the debt

If the buyer intends to purchase housing in a mortgage, this is also possible. It's easier if he plans take a loan in the same bank of which the seller is a client. In this case, the transaction can be carried out quite simply. The institution issues a new loan and re-registers the pledge.

In some cases, banks are ready to consider the sale of apartments to buyers with a loan from another institution. But it will be more difficult. Here you should find out specifically in your bank.

What you need to be prepared for when selling an apartment in a mortgage

A few years ago, it would have been more difficult to get rid of a mortgaged apartment, because such transactions were considered more exotic. Although in 2022 the mortgage market showed deafening recessionIssuance of mortgages in Russia in April collapsed four times / RBC, before that it was actively growing due to low rates. So the sale of apartments on bail has become a more or less ordinary event. This arises very simply: the more apartments are bought on a mortgage, the more they sell from under it.

Moreover, now the desire to sell housing is often caused not only by personal motives, but also by geopolitical ones. That is, excellent apartments appear on the market, which in other circumstances no one would sell. What's in the hands of buyers.

And yet, when selling an apartment on bail, you should be prepared for the fact that the search for a buyer may take longer. It is also possible that you will have to slightly reduce the price relative to the market. Otherwise, this is not a hopeless deal that can be carried out.