How to sell a mortgage apartment: step by step instructions

A mortgage is not only a type of long-term lending, but also a restriction of the property owner in his rights. Housing purchased through a mortgage is in fact considered the property of a credit institution until the full repayment of the loan debt. By law, until the payment of the principal, interest on the loan and the removal of the burden, the borrower is deprived of the right to dispose of housing purchased on credit. Based on this, there can be no talk of independent implementation of the living space.

But it often happens that a borrower, for various reasons, wonders how to sell a mortgage apartment. For example, if the payment of a debt proved to be an overwhelming test for him or the property is divided in the process of family breakdown. Applicable to the latter example, borrowers often ask whether it is possible to sell a mortgage apartment during a divorce. Various options for getting rid of collateral housing come to the rescue.

When to resort to the sale of mortgage housing?

It is important to note that this is a rather time-consuming process. Happy owners of their own homes do not so often ask themselves whether it is possible to sell a mortgage apartment burdened with collateral. But still, such situations are encountered in practice.

Mortgage is a serious deliberate step, the consequences of which the family has been feeling for several years. First of all, the family budget of borrowers, who most often are in official marital relations, suffers. Nevertheless, life circumstances sometimes leave no other way out, as soon as parting with housing purchased on a mortgage. Typically, borrowers are faced with such a need in the following cases:

1. During the loan repayment period, the borrower's family increased. The previously acquired apartment in terms of area has ceased to satisfy the requirements of the family. Perhaps the spouses had more children born, or someone from close relatives moved to them for permanent residence. Then the question of how to sell a mortgage apartment and expand square meters becomes relevant for them.
2. Spouses, acting as co-borrowers on a mortgage, decided to divorce. By law, the debt is subject to sharing between spouses in equal shares. To get rid of the burden of payment, it is more advisable to solve the problem of how to sell a mortgage apartment in case of a divorce.
   
3. The need for an urgent move to permanent residence in another region of the country, for example, when changing jobs. Accordingly, the need of the borrower for housing at the place of obtaining a loan disappears by itself.
4. An urgent need for cash associated with unforeseen life circumstances, including in connection with the loss of a permanent job, lower income levels and other financial difficulties.
5. Thirst for enrichment. Often, a bank client deliberately acquires an apartment in a house under construction, since the cost of such property is much lower than the cost of housing that has just been commissioned. And if the borrower knows how to sell a mortgage apartment, then he repays the loan and receives additional profit due to the difference in the cost of housing.

Main condition

The sale of property encumbered by a debt agreement is not an easy, but quite realistic legal option for exemption from credit bondage. However, for this it is necessary to obtain the consent of the credit organization, because it is the bank that is the actual owner of the apartment until the loan is repaid.

It is important to understand that without the permission of a credit organization, registration of a transaction is impossible. Such scams are very quickly opened and suppressed by the bank, and the party that suffered as a result of a failed transaction can bring a complaint to the borrower.

Options for the sale of collateral

If the borrower still decided to get rid of the housing purchased on credit, he needs to be patient. The process will be tedious and time-consuming. Before using one of the sales options, it is necessary to analyze each of them and choose the most optimal one.

Loan repayment before the expiration of the term calculated by the bank

One of the easiest and most win-win options. The main difficulty of this method is to find an interested solvent buyer who agrees to pay off the rest of the debt with interest on the mortgage as part of the deposit paid. In this case, the sale of housing will proceed in several successive stages.

Notification of a credit institution of the intention to sell a collateral apartment

In order to obtain permission from the bank, the borrower will have to give convincing arguments in favor of his decision. Early repayment of the loan deprives the lender of a part of additional enrichment funds in part of interest. In many ways, the reason for the sale of mortgage housing should be significant.

Finding the right buyer

At this stage, the borrower will have to sweat, as it is not easy to find a person who is ready to pay all the funds before the conclusion of the main contract of sale. Such transactions involve a certain risk for the homeowner. As a guarantee of seriousness of intentions, the borrower must write himself out before the final settlement with the buyer and deregister all residents registered in the apartment.

Down payment transfer documentation

At this stage, it is necessary to conclude a deposit agreement, according to which the buyer transfers the money to repay the remaining debt on the mortgage loan, and the seller agrees to sell the collateral immediately after removing the burden. In order not to cause suspicion among the buyer, it is more advisable to certify the agreement with a notary. In the contract it is important to indicate the amount of the deposit, the method of its transfer, as well as the timing of the removal of the burden and the execution of the purchase and sale transaction.

Settlement with a bank and a seller

This step involves the transfer of funds with the opening of two depository cells in a credit institution. In the first, the buyer puts the amount equal to the balance of the mortgage debt, in the other - the balance of the price of the apartment, intended for the seller. Upon completion of the transaction, the bank gains access to its money, and the borrower - to the balance in the second cell.

Amortization

To do this, both parties to the transaction must jointly visit a credit institution, where the balance on the principal debt, together with interest, will be calculated. After processing the documentation confirming repayment of the loan, the borrower receives the right to remove the burden from the apartment.

Removal of encumbrance

This process is carried out in the presence of the borrower and the representative of the credit organization in the bodies of Rosreestr. Removal of encumbrance is possible subject to the presentation of the following documents:

• sales contract;
• passports of owners (borrower and members of his family, if the apartment is in shared or joint ownership);
• deposit agreements;
• a document from the bank confirming the repayment of the loan.

Signing a contract with subsequent state registration of the transaction. This step-by-step instruction on how to sell a mortgage apartment is most often used to sell collateral. In addition to the above option, there are other ways to conduct a transaction.

Mortgage repayment with a credit institution

This method completely deprives the borrower of the opportunity to benefit from the transaction, as the buyer is directly involved in the search for the bank where the seller pays the loan. In such situations, the credit institution pursues exclusively its own goals in terms of repayment of funds borrowed for the purchase of housing, so the apartment is most likely to be sold at a price lower than the market. The rest of the procedure is practically no different from the previous method, except that the transaction is executed by the representative of the bank, and not by the borrower. Briefly, the algorithm of actions that allows you to understand how to sell a mortgage apartment through a bank is as follows:

1. Notification of a financial institution of its intention.
2. Search for a buyer by a credit institution.
3. Registration of a preliminary contract between the seller and the buyer with subsequent certification by a notary.
4. Design of depository cells (the number of cells depends on the price).
5. Transfer of funds by a home buyer.
6. Removal of encumbrance with the subsequent conclusion of the contract of sale.
7. State registration of the transaction.

Own sale of an apartment by the borrower

A similar method is carried out without the involvement of third parties solely by the borrower. The main condition is openness and action within the framework of the law. Hiding the fact of encumbrance imposed on the apartment is equivalent to fraudulent activities. If the buyer finds out about the burden in the process of registration, there is a high risk of refusing to conclude a transaction. Therefore, before you sell a mortgage apartment, you must inform the buyer that it is pledged to a financial institution.

The implementation of collateral real estate with this method will take place in the following sequence:

1. The buyer’s appeal to a credit institution in order to notify of the intention to repurchase collateral.
2. Drawing up a preliminary contract between the buyer and the bank.
3. Opening depository cells.
4. Removal by a creditor of an encumbrance.
5. Conclusion of a contract of sale with subsequent registration of the transaction with the authorities of Rosreestr.
6. Transfer of funds to the bank and the borrower (if the cost provides for the balance to be paid to the seller).

How to sell a mortgage apartment in a mortgage?

Debt redemption is a standard scheme for transferring debt obligations in favor of third parties who have expressed a desire to assume the obligation to fulfill them. Is it possible to sell a mortgage apartment in a mortgage? Similar transactions are applicable to the sale of real estate. In this case, the borrower independently finds a citizen who is ready to redeem his debt. The procedure for exemption from a mortgage will consist of the following steps:

1. Search for a suitable borrower that meets the requirements of a credit institution in terms of age, solvency, and good faith.
2. Mortgage renewal. A new contract is concluded immediately after verification of the client proposed by the borrower.
3. Transfer of debt. In essence, the collateral continues to be owned by the bank, but the mortgage payer is changing. The burden of reissuing loan obligations rests entirely with the bank employees.

Any of these methods allows you to solve the problem of how to sell a mortgage apartment of Sberbank and get rid of loan debt. However, not each of them allows you to return the funds spent on payment under a debt agreement. It all depends on the specific circumstances.

Risk Warning

Any transaction with real estate is fraught with certain risks. The buyer runs the risk of running into scammers and losing a large sum of money, since the procedure for selling mortgage housing involves the transfer of funds before the conclusion of the main contract of sale.That is why it is recommended to involve a qualified lawyer specializing in mortgage lending, an experienced realtor in the process of acquiring housing, who will help you figure out how much you can sell a mortgage apartment and how to do it right.

Unlike the buyer, the seller risks much less, since the entire process of selling collateral is carried out under the supervision of credit institution lawyers and government agencies. The bank takes the main risks, because in case of fraudulent actions on the part of the buyer, it is the lender who incurs the losses.

If you analyze in detail all the stages of the sale of mortgage housing, it becomes clear: selling a mortgage is a transaction involving minimal risks for participants in such agreements. The main thing is to choose for yourself the most convenient option for implementing a collateral apartment and act in close cooperation with a credit institution.