Do You Want to Sell but Have Mortgages?
It is believed that the buildings with mortgages sell for 10-20% less than their market value. This is because there are certain deductions of the buyers. However, it mainly happens due to the ignorance of the functioning of the banking system. So, what do you do when you sell your mortgaged property?
Find out if you can sell before you start the necessary actions for alienation.
Visit the bank where the mortgages are registered. If you fall behind or have done that, at one time have had overdue interest, ask if this can prevent you to sell. Note that those who have fallen behind with payments are recorded in the file of “special customers.” The analysis undertaken to issue the agreement of alienation can be decided by a special board. Note that in certain unusual circumstances, the bank cannot agree with alienation because it has the legal right.
Find out the exact amount needed for a credit refund.
Request your credit officer to prepare a simulation of your anticipated refund loan (principal plus interest). Ask if the bank has more fees or requires further expenditure. Try to get this information in writing (by going to a person at the bank). In any case, avoid simple phone calls or worse, trying to calculate how much you have to return to them. Make sure the necessary amount of relieving the property is not higher than its market value.
Ask about the time required to issue the alienation.
It is a very important information in developing real estate transaction. Remember that the bank will require the name of the promissory buyer. The agreement of alienation is explicitly linked to that person. Please note that the deadline for issuing such a document can reach 40 days during which many things can happen.
If the bank clerk is hesitant or gives vague information, request a discussion with the supervisor.
The quality and accuracy of the information provided by them are very important for a successful transaction. Because of the crisis, some banks have limited staff or hired youngsters who have perhaps not the necessary experience in such situations. Make sure you get full information from a competent person.
Communicate to your broker and the potential buyers that the property is mortgaged.
Talk to the real estate agent about the information available from the bank and your mortgages. To learn more about how this works, get assistance with your mortgage today.