Selling a mortgage apartment: legal ways. Is it possible to sell a mortgage apartment? Mortgage apartment for sale

Both the advantage and the disadvantage of acquiring real estate with a mortgage at the same time is that the payment for the apartment takes place over many years. Borrowers often have a question: is it possible to sell an apartment on a mortgage and buy another on a mortgage?

The scheme for obtaining a mortgage is already familiar to every borrower who has issued an apartment on credit. Consider how to sell real estate that has property encumbrances.

Reasons for changing apartments

Depending on the reasons for which a change of apartment is necessary, the issue of buying and selling real estate can be resolved in different ways. Realtors note that the most popular reasons for changing one apartment purchased with a mortgage to another purchased under the same program are:

improving the financial situation of the borrower or increasing the family. Often, mortgages are issued by young families who, after having children, seek to improve their living conditions;
change in family circumstances. This is how borrowers veiledly call a divorce when they need to sell property acquired in marriage, split the money and purchase smaller apartments;
worsening financial situation. Banks issue mortgage loans not only in rubles, but also in dollars or euros. Over the past couple of years, the domestic currency has depreciated by more than two times, while salaries have remained at the same level, and now many families are simply unable to repay the loan taken.

There may be other reasons why the borrower needs to change housing, for example, moving to a new job and not wanting to get there through the whole city.

Most often, the reason for the sale of an apartment is the need to change the place of residence or a change in the marital status of the borrower.

If it is planned to increase the living space or move to a more prestigious area, that is, the property planned for purchase is more expensive and liquid, the borrower can apply to the bank with a question about replacing the collateral. However, this option is possible, mainly if the acquisition of new housing is under an exchange agreement, or the borrower first buys new property and then sells the old one. Such situations are rare. As a rule, the borrower must first sell housing, and then buy a new one. And in such cases, the borrower is interested in one question: is it possible to sell a mortgage apartment? Since the purchase of a new living space will go according to the usual mortgage registration scheme.

What does the law say?

Issues related to the acquisition of real estate on a mortgage are regulated by the Federal Law “On Mortgage (Pledge of Real Estate)” (hereinafter referred to as the Law). Article 37 of the aforementioned law says that for the alienation (simply speaking, sale) of the pledged property, the consent of the pledgee, that is, the bank, is required. Thus, without the permission of the bank, the transaction will not be entered in the state register.

If the seller somehow bypassed the law and sold the pledged property, then in accordance with Article 39 of the law, the bank has the right to demand early fulfillment of obligations, including from the buyer, or the recognition of the transaction as invalid.

Important! Without the consent of the bank, the transaction will be invalid! Ownership will not be transferred to the buyer.

How to get permission to sell?

So, the main condition is to obtain permission from the bank to sell real estate. Almost all banks have already established a clear procedure for issuing permission to alienate property. Financial institutions are interested in paying the mortgage, but who will be the owner, they are not interested.

As a rule, alienation is possible subject to the full repayment of the mortgage loan. If the borrower is not able to close the debt on his own, then the situation becomes somewhat more complicated. First, the borrower must find a buyer who is ready to pay the amount for the mortgage, only after that the bank removes the burden, and the transaction is possible.

Explain to the bank the reason why the decision was made to sell the apartment, and he will most likely meet you and reduce the time required to complete all the paperwork.

Problems associated with the sale of a burdened apartment

Selling an apartment burdened with a mortgage is a rather difficult task, since not every buyer will agree to purchase such a property. This raises two problems:

narrow circle of buyers. The most difficult thing in the sale of mortgage real estate is finding a buyer. Many are simply afraid to contact the bank for fear of losing both real estate and money in the future. Given the rich selection of real estate for sale, finding a person willing to buy such an apartment can be a real challenge;
the need to sell at a lower price. Since the circle of potential buyers is significantly narrowing, in order to make the offer more attractive, one has to make significant discounts, giving up an apartment at a price below the market one.

In addition, sometimes banks impose a penalty for early repayment of the mortgage. In this case, you need to calculate all the costs so that it does not turn out that the transaction is unprofitable.

When selling an apartment burdened with a mortgage, get ready to lose a little in its value.

Ways to sell an apartment

The most likely ways to sell an apartment burdened with a mortgage are:

independent sale to the buyer for cash;
sale of an apartment to a buyer who arranges it for a mortgage;
sale with the involvement of a real estate organization as an intermediary.

Let's consider all the options in more detail.

self sale

In this case, the seller is looking for a buyer on his own.

The essence of the transaction is as follows. First, the buyer gives the seller the part of the money that needs to be paid on the mortgage in order to pay off the debt. After that, the seller and the representative of the banking organization remove the encumbrance from the apartment, and the buyer registers the rights to the property, simultaneously transferring the remaining amount.

The main problem is that it is necessary to find a buyer who will agree to deposit the necessary amount before the transaction. This operation is quite risky, because in case of dishonesty of the seller, the buyer may be left without an apartment and without money. To protect yourself, the buyer may require to register the deposit agreement with a notary.

The main problem when selling a mortgaged apartment is the need to convince the buyer to make an advance payment.

Sale to a buyer who arranges a mortgage

In this case, the ideal situation is when the buyer has the amount needed to pay off the mortgage. The seller pays the bank for the money received and removes all restrictions. After that, the buyer provides the documents necessary for the transaction and draws up a mortgage, and the seller receives the rest of the funds from the bank.

It is desirable that the mortgage is taken from the same bank. Then you can count on a faster and simpler procedure, and the documents of the future buyer can be attached to the application with a request to allow early repayment of the mortgage.

Registration of mortgage buyers in the same bank is ideal for both the seller and the buyer. In some cases, the bank is ready to "replace the borrower" under the mortgage agreement.

Selling an apartment with the help of a real estate agency

The situation is very similar to the first way to sell an apartment, only a realtor is looking for a buyer. For this service, he takes a certain percentage. Involving a well-known real estate agency on the market as an intermediary will help convince a potential buyer that the seller does not have any malicious intent and that it is necessary to pay part of the funds in advance.

Large real estate agencies can issue a loan to pay off a mortgage to remove encumbrances from real estate. This will increase the chances of a faster sale.

Results

So, it is possible to sell a mortgage apartment and buy another one, and there are even several ways to do it. Of course, the presence of encumbrances complicates the procedure for finding a buyer and closing a deal, but it is not a problem that cannot be solved.

Most people do not have sufficient financial security to buy an apartment. They acquire it by getting a bank loan. Due to this, the purchased apartment is a guarantor that the loan and interest will be returned. For the entire period of debt repayment, the ownership of the acquired property is "frozen" by the bank. The owner does not take full control of the property.

The encumbrance of real estate and its removal must be registered by the state. When concluding transactions for apartments, information is entered into the state register of rights. For any apartment, the buyer can obtain information about the presence of encumbrances on it.

Selling a mortgage apartment is not very profitable. The seller has to reduce the price due to the fact that the attractiveness of the property is much lower compared to ordinary apartments. In addition, the moral and time costs increase significantly. You have to conclude many agreements at the bank, the registration chamber and at the notary.

Favorable conditions for the seller are created only when the price of housing rises in the real estate market.

Ways to sell an apartment on a mortgage

A loan for an apartment is valid for 10-20 years. During this period, many want to improve their living conditions by buying larger housing. Options may vary. Even if the property is under a mortgage, the property is in the name of the buyer, and he can sell it despite the restrictions. There are several such ways. All of these schemes imply a certain procedure.

Early repayment of the debt before the sale

The situation is very simple: the mortgage is an obstacle to the sale and it must be closed by repaying the debt. Then the sale of the apartment without third parties will be possible. In such a situation, the main issue is to find the necessary amount of money.

The family that took housing on credit does not have such funds. Otherwise, she would have acquired it immediately and did not overpay interest. Relatives or friends can come to the rescue, who can lend funds for a period until the apartment is taken out of the mortgage and the seller receives payment after the transaction is completed.

Otherwise home can be purchased by the buyer if he is very interested in it. The motivation for this may be the desire to live in the area or the affordable price of housing.

All activities for the sale of an apartment can be started with the consent of the bank. It all depends on how the contract is drawn up with the borrower. Conditions may vary. One of them is the period after which you can start selling. Otherwise, the borrower must pay at least 50% of the mortgage. Thus, before the sale, the seller must notify the credit institution of his intentions.

The main task of the borrower is to find a buyer who is ready to pay for the property with encumbrance. To proceed with the sale, all tenants must check out of the apartment.

When an agreement with the bank is concluded, the seller receives a 100% prepayment from the buyer in the following options:

cash (the most unlikely and unsafe way);
to the seller's account in the bank that issued the loan;
the buyer pays the necessary amount to repay the loan, after which the bank immediately lifts the ban on the alienation of real estate.

Before entering into a deal, you need to make sure that there is no penalty for repaying the loan ahead of schedule. If it is significant, the whole event will be unprofitable for the seller. In addition, paying off the debt with the buyer's money creates a certain risk for him. Such an operation can only be performed by the seller, who is in a contractual relationship with the bank.

Involvement of the lender in the transaction as a third party

The protection of the rights of both parties is ensured by the involvement of the creditor bank in the sale. The presence of an intermediary in the transaction convinces the buyer to make an advance payment, after which the ban on the alienation of real estate is lifted and the purchase and sale is formalized. Even though the buyer deposits funds to repay the loan to the seller's account, the lender becomes aware of the transaction, thus preventing fraud.

Partially, the buyer's rights are protected when he draws up a guarantee agreement and officially repays the seller's loan on his own behalf. So he has the right to demand the return of the debt.

The transaction can be carried out in two ways, after which the buyer receives the ownership of the apartment without encumbrance:

Removal of collateral from real estate before the transfer of ownership to the buyer

Having received the bank's consent to the transaction, the buyer places the money for the apartment in the 2nd deposit box of the creditor bank. In one he lays the amount of the debt for the mortgage, and in the next - the rest of the funds. Only after that, contracts for the sale and purchase are signed and applications are submitted to the registration chamber. After receiving documents confirming the ownership of the buyer's property, the bank can take the loan repayment amount from the deposit box. The seller is left with the rest of the money from the 2nd cell, which he can dispose of at his own discretion.

Preliminary registration of the contract of sale

Having drawn up a purchase and sale agreement in advance, the buyer issues an advance payment to the seller in the amount of the loan balance. With this amount, the seller repays the loan. Then the bank removes the encumbrance from the apartment, giving him a document stating that the mortgage has been paid. Further, the property rights are registered in the FMS for the buyer, who then pays the rest of the amount to the seller and enters into the rights of the owner of the apartment.

Replacing a Borrower

Although rare, the bank can replace the borrower on the loan. The reason may be problems with repayments that arose from the original borrower. The most common option is when the buyer takes a loan from the same bank. After explaining the reasons, a petition is submitted to the creditor with the documents of the new borrower. The package is fully consistent with the one that the seller had when he applied for a loan. It includes identity documents, financial condition, legal capacity and marital status.

In this case, mortgage obligations are sold. The amount of compensation to the seller is negotiated separately. The scheme is applied if the buyer does not have enough funds to pay the remaining loan.

The bank does not always agree to approve a new borrower as it may not have sufficient income.

With a positive decision, a loan agreement is concluded with a new borrower and funds are allocated to pay off the seller's debt. Then the mortgage and property rights are re-registered to the new owner.

The interest that has accumulated is paid by the seller, since they are not related to the cost of the apartment. This is the payment to the bank for the loan.

When the current value of the home exceeds the amount of the debt and the repaid loan, the difference between them is paid to the seller. In some cases, it becomes profitable for him if real estate has risen in price.

The situation may be different when a home buyer receives a loan from another bank. In this case, the seller's creditor does not always agree to such a deal, since it is not profitable for him due to the shortfall in interest.

An extreme case is the sale of an apartment by a creditor forcibly. But this is an extreme measure taken by the bank when the owner of the apartment cannot pay off the mortgage and find a new borrower. In this case, the bank unilaterally seeks a new buyer for the apartment, having entered into the rights of the mortgagee. If the proceeds from its sale do not cover the amount of the debt, the borrower is obliged to add the missing funds. This method is the most disadvantageous for him and should not come to this.

Characteristic features of buying an apartment with encumbrance

Selling a home that is mortgaged by a bank is a good option. The correctness of compliance with all operations is controlled by the bank. When making a deal, consider the following:

The bank must be notified in advance.
It is better to make payments through the bank. If they are between the seller and the buyer, receipts should be obtained for all amounts.
The conditions for the withdrawal of the deposit are mandatory.
The terms of the transaction are agreed in writing by all parties.

Conclusion

The sale of an apartment with an encumbrance differs from the usual one by the presence of a third party in the transaction in the form of a creditor bank. Russian law prohibits the sale of only apartments that have been seized or are located in an emergency building.

If you still have questions about the sale of real estate burdened with a mortgage, then our on-duty lawyer is ready to advise you free of charge directly on the site. Just ask your question in the form below and wait for a response.

Last update: 08/20/2018

Question:

I bought an apartment with a mortgage. Can I sell it if the loan has not yet been repaid and the apartment is pledged to the bank? How to do it?

Answer:

You buy an apartment like this with a mortgage, you start paying off the loan, and then - bam! An addition to the family. Or moving to another city. Or they were fired from their jobs. Or, on the contrary, you suddenly got a pay raise at a new job, and you decided to build your own house. In general, plans have changed dramatically, and you have a loan for 15 years for an apartment ... What to do? We need to somehow get rid of this burden. A reasonable question arises - Is it possible to sell an apartment bought with a mortgage if it is pledged to the bank?

We answer - it is possible. And even in several ways. But there are difficulties here. Which? Now we'll show you everything. But first, let's clarify something.

Sale of a mortgage apartment can happen as primary housing market, and secondary. On the "primary" owner of an apartment in a house under construction does not yet have property rights , so he can only sell his own claim rights on her by . On the "secondary" owner is already selling his property at. In both cases, the principle of action is the same, but in order to sell an apartment on the primary market, in addition to the consent of the creditor bank, you will also need consent developer.

How to sell a mortgage apartment that is pledged to a bank?

- How to sell a mortgage apartment during a divorce of spouses?

If the spouses bought an apartment on a mortgage, and then divorced before paying off the loan, then they will have to share not only, but also common debts. The division of debt obligations to the bank can only take place with the participation of the bank itself, because for him, the divorce of the debtor spouses is not a basis for changing the terms of the loan agreement.

It is possible to change the conditions for the return of a mortgage loan only with the consent of the bank itself, and only if it is satisfied with the solvency of the spouses separately. The spouses themselves, however, are not entitled by their agreement ( between themselves) change the order of repayment of the loan. And if the division of property and debts of the spouses takes place in court, then the bank will be a participant in this civil process.

Selling a mortgage apartment after the divorce of the spouses ( co-borrowers) is also possible only with the consent of the creditor bank, for example, using one of the methods listed above. Alternatively, by mutual agreement of the spouses and the bank, one of the spouses may waive their share of the pledged property ( apartments) and from its part of the debt, respectively.

- Is it possible to sell a mortgage apartment in a mortgage?

This refers to the case when the Buyer is also a mortgage lender and has an approved loan from another bank. That is, the mortgaged apartment is sold to the Buyer, who himself uses the loan funds. This is also possible with the consent of the pledgee bank).

The buyer, having received a loan approval from his bank, chooses a mortgage apartment mortgaged to another bank. Then the mortgage loan from the Buyer's bank extinguishes the balance of the debt to the Seller's bank, and the balance is transferred to the Seller himself. In this case, the mortgage encumbrance of the apartment is transferred ( re-registered) from the Seller's bank to the Buyer's bank. In fact, when selling a mortgage apartment in a mortgage, there is an on-lending with the transfer of debt and collateral to another bank.

– What are the risks for the Buyer when buying a mortgage apartment?

Serious risks may arise for the Buyer if he deviates from the above rules for buying an apartment with a mortgage encumbrance. For example, if the Buyer takes too much advance payment to pay off the mortgage, and after settling with the bank, the Seller refuses to sell the unencumbered apartment ( they say, I'm sorry, brother Buyer, I'll return the money to you later, otherwise it was hard for me to pay the bank a loan - thanks for helping).

What taxes do you have to pay when selling a mortgage apartment?

Here the taxation is the same as when selling an ordinary apartment ( those. without credit and without collateral). If as a result of transactions for the purchase of an apartment on a mortgage and its subsequent sale, the owner makes a profit, then he must pay personal income tax-13%. But he can reduce this tax or even reduce it to zero by applying tax deductions.

"REALTOR'S SECRETS":

A detailed algorithm of actions when buying and selling an apartment is presented in an interactive map. It will open in a pop-up window."> STEP-BY-STEP INSTRUCTIONS (will open in a pop-up window).

The question of the possibility of putting up for sale an apartment in a mortgage is very important. Some owners of mortgage real estate face financial difficulties: for them, monthly installments become unbearable. Others have a desire to purchase more spacious housing. And still others would just like to make money on a mortgage.

These and other factors make the owner think about selling mortgage housing. But after all, the living space does not belong to them completely. So is it possible to sell an apartment purchased with a mortgage?

Those who are concerned about this issue can calmly exhale: mortgage real estate can be sold in the current 2020. Only the sale procedure must be carried out competently, guided by the established rules. Articles No. 29 and No. 33 of the Federal Law relating to mortgage lending provide the borrower with the right to operate and sell an apartment purchased with a mortgage.

At the same time, the owner of mortgage housing must remember the key rule: he is not entitled to make any transactions with the apartment (including selling) without the consent of the credit institution. Otherwise, all rights to real estate are transferred to the bank (Article No. 301 of the Civil Code of the Russian Federation).

How to sell a mortgage apartment?

There are four ways to sell mortgage housing:

Early repayment of a loan.
Self sale.
Sale with the help of a bank.
Sale of debt obligations.

Early repayment

This method involves searching for a buyer who will agree to buy a home with an encumbrance and give the seller money to pay off the rest of the debt ahead of schedule. Finding such a buyer is not easy: burdening an apartment often scares off potential buyers.

The scheme of early repayment of the mortgage is relevant for the sale of housing under construction. Housing in new buildings with a good layout is in high demand, and a conscientious developer usually has no end to buyers for those apartments that are at the final stage of construction.

How is the procedure for selling an apartment under the scheme of early repayment of a mortgage? The first step is to get the consent of the bank. The borrower will need to indicate the reason for the early repayment of the loan, because this is not very profitable for the bank. Further steps of the procedure:

Determination of the loan amount.
Drawing up an agreement between the borrower and the buyer (certified by a notary).
Extract of the borrower and all family members (including minors) from the mortgage housing.
Making a deposit in the amount necessary to fully repay the mortgage.
Closing the mortgage and removing the encumbrance from the apartment.
Final stage: re-registration of the transfer of ownership of the apartment in the registration chamber.

self sale

The key recommendation for the seller: you should not hide from the potential buyer the fact that the property being sold is secured by the bank. Such behavior will be regarded as involving the buyer in a scam.

The transaction itself is simple. The main thing is to do everything according to the law. Suppose the buyer liked the apartment and decided to buy it, knowing that the property is under encumbrance. The next step in the deal is:

The buyer addresses the creditor with an expression of desire to redeem the collateral.
Bank employees draw up a preliminary sale and purchase agreement with him and notarize the document.
The buyer deposits the amount necessary to pay off the debt in one bank cell, the remaining amount for the borrower - in another.
An encumbrance is removed from the apartment.
A contract of sale is drawn up in Rosreestr.
The bank and the borrower get access to the cells with money.

Sale of mortgage housing by a bank

When using this scheme for the sale of mortgage housing, the bank no longer acts as an outside observer. He conducts the transaction from beginning to end, issues his cell, deals with all documents. Only signatures are required from the seller. Bank employees will independently contact the Regpalata.

The buyer of a mortgaged home deposits money into the lender's safe deposit box, and puts the difference between the cost of the home and the mortgage debt into another safe deposit box. Further, the bank informs the Regpalata about the payment of the loan, and the encumbrance is removed from the object of sale.

Such a scheme is not very beneficial for the borrower: the bank is not particularly interested in selling the apartment at a higher price. It is important for him to repay the debt, so it is quite enough that the amount of the debt is similar to the cost of the apartment.

Sale of debt

This method involves the sale by the borrower of his debt obligations to the bank. In this case, the mortgage loan is reissued to a new borrower. The bank enters into an agreement with the buyer to transfer the remaining part of the loan to him. Thus, the new borrower becomes the owner of the mortgage housing and the debtor on the loan.

Many buyers themselves want to buy an apartment that is under encumbrance, because mortgage real estate is often offered at a lower cost. For such buyers, the procedure for obtaining a mortgage loan is almost the same as the standard one:

The candidate provides a package of documents for consideration of the application for a mortgage loan.
If approved, an appraisal of the acquired property is carried out.

The re-registration of collateral in Rosreestr is carried out exclusively by the bank. The borrower only needs to sign a document on the assignment of a debt obligation.

In the event of a loan being reissued, another credit institution may also act as a buyer. In such a situation, the mortgage loan is transferred to the bank that provided the new loan to pay off the old one. Nowadays, this is a fairly common occurrence, since every year banks reduce the interest on the loan. And the borrower, who has found a bank with a more acceptable interest rate or more loyal conditions, refinances the mortgage by transferring the debt to another credit institution.

Borrowers benefit from this procedure. However, not every bank agrees to such a deal: some banks do not allow refinancing under any pretext, others impose penalties on the borrower, which sometimes reach considerable amounts.

Tax liabilities

The seller of mortgage housing should take into account one nuance: if the property is owned by him for less than 3 years and sold at a higher cost, he will have to pay tax on the sale of the apartment (13%).

The nuances of selling real estate purchased under a military mortgage

According to the law, housing purchased using targeted housing and mortgage loans, until the loan is fully repaid, is a pledge not only from a credit institution, but also from the Ministry of Defense of the Russian Federation.

The encumbrance will be removed from the apartment only after the full repayment of the loan and after the borrower reaches the 20-year service life. The scheme for the sale of such an apartment usually includes the search for funds to pay off the CHL.

The transaction algorithm is as follows:

The seller notifies the bank and Rosvoenipoteka of his desire to sell the property and remove the encumbrance.
Specifies the amount of debt in the bank.
Repays the amount owed.
Finds a buyer for a home.
Receives a document on the removal of the encumbrance.
Receives a document on the right of ownership in Rosreestre.
Selling an apartment in the usual way.

Important: to pay off the debt to Rosvoenipoteka (as well as to pay off part of the debt to the creditor bank in the case of a civil mortgage), you can use the funds received as part of maternity capital.

Video: Procedure for the sale of mortgage real estate

Documents for the sale of mortgage real estate

Carrying out the procedure for the sale of mortgage housing requires the borrower to prepare a full package of documents. What does it include?

a document confirming solvency;
purchase and sale agreement with the buyer;
certificate of no debt on the loan;
mortgage on a loan;
a document confirming the transfer by the buyer of funds for real estate, which will be used to repay the balance of the loan;
a document confirming the removal of the apartment from the encumbrance.

Thus, it is possible to sell an apartment that is in a mortgage. And even in several ways. The main thing is to carry out the procedure correctly, without hiding anything from either the bank or the buyer.

When paying off a mortgage loan that has become unbearable, it will not be superfluous to know how to sell an apartment in a mortgage. For many borrowers, there will be unexpected information about how to sell an apartment on a mortgage and earn money at the same time.

Encumbranced real estate cannot be sold without the permission of the bank. When mortgage lending, according to Art. 29 and Art. 33 of the Federal Law “On Mortgage (Pledge of Real Estate)”, as amended on May 7, 2013, No. 102-F3, the borrower has the right only to use the pledged property and is obliged to keep it in proper condition.

And its loss or sale to third parties is illegal. The event that has occurred is resolved in favor of the pledgee (that is, the bank), in accordance with Art. 301-303 of the Civil Code of the Russian Federation. But there are a number of cases when the bank can meet the borrower halfway and allow the sale of a mortgaged apartment.

Why do they want to sell an apartment on a mortgage?

The reasons why the borrower begins to think about how to sell an apartment on a mortgage can be divided into 3 groups:

in case of loss of income sufficient to repay the loan;
if there is a need to purchase more spacious housing;
if you want to earn on a mortgage.

If you lose enough income to repay the loan
No one is immune from the loss of a stable financial income. It is impossible to predict what will happen in a few years. And payments in a strict order must be made every month, in full and on time, regardless of any situations.

Therefore, the desire to sell the apartment as soon as possible in order to finally pay off the bank before additional measures are applied, in accordance with the Federal Law “On Mortgage (Pledge of Real Estate)”, is quite natural and predictable.
If you need more spacious housing
For example, young people vigorously climb the career ladder, get married / get married, have children. A mortgaged apartment becomes “small”. Most of these borrowers are considering selling a mortgage apartment and then buying a larger one.

The bank is not forbidden to take a second mortgage on a larger apartment if the income of a young family allows you to make payments on two long-term loans at once. This option requires a down payment.
If you want to earn on a mortgage
If an apartment was purchased in a building under construction at a fairly early stage, then by the end of construction, its price rises significantly and in some cases more than covers all the costs associated with a mortgage.

Participants in shared construction are trying to sell their apartment before putting the house into operation, since it is much easier to reissue an assignment agreement than to deal with the design of finished housing (unless, of course, the goal was to earn money from the beginning).

But it also happens that the need for housing under construction has disappeared, and the borrower thinks about selling it with maximum benefit for himself. These are exceptional cases.

When selling a second home that is under encumbrance, the borrower has to reduce its market value, since there are very few people who want to get involved with bank collateral.

Consent of the bank to sell an apartment in a mortgage

An apartment purchased through a mortgage is the property of the debtor, but in order to sell it, you need to get the consent of the bank.

On the one side , the bank is interested in the full repayment of the loan and should not interfere with the sale of collateralized real estate if the borrower can no longer bear debt obligations on the mortgage.

On the other side , when allowing the sale of mortgaged real estate, the bank loses its possible profit associated with the payment of interest on the use of borrowed funds issued for the purchase of this property.

If the possibility of selling an apartment in an encumbrance is prescribed in the concluded contract, then the bank cannot refuse. So that borrowers do not abuse this opportunity, the sale of a mortgage apartment is accompanied by the imposition of significant penalties and protective commissions.

Don't know your rights?

But they are incomparable with the likely consequences due to the termination of mortgage payments. If the borrower objectively can no longer regularly pay the loan, he should not delay the sale, it is wiser to resolve the situation before litigation.