You can sell an apartment that has a mortgage. Selling an apartment with a mortgage. The main questions that sellers have. Features of selling mortgage real estate

You buy an apartment with a mortgage, a couple of years will pass - and there will be an addition to the family. Or another job with a different salary. Or a super profitable purchase option turned up. And you have a loan for 20 years... How to sell an apartment with a mortgage, so that everything is in accordance with the law, and not undercut? Is this even possible? Yes. Moreover, there are several options for such a sale. Let's talk about them.

The essence of a mortgage is that the bank issues it to you as collateral for the apartment you are buying. This is called encumbering your newly acquired property. After purchasing a home, the mortgage on it is sent to the credit institution for storage and remains there until you repay the loan.

All rights of mortgage participants are specified in the federal law “On mortgage (real estate pledge)” (dated July 16, 1998 No. 102-FZ). Article 29 of this document allows the buyer of the property to use it for its intended purpose. That is, live in an apartment, register everyone you want in it, rent out housing, and so on.

But as for the disposal of property (the right to sell), there are some subtleties. Article 37 states that an apartment can be alienated, including through sale, but only with the consent of the mortgagor. This means that with any method of sale, the first step will be to contact the bank. Otherwise, the transaction may be contested, and the property will become the property of the bank - Article 301 of the Civil Code of the Russian Federation tells us this.

Real stories:

“I had a mortgage at a monstrous interest rate - I think it was 14.8% - in one small bank. When 150 thousand remained, I no longer had the strength to live in a one-room apartment, so I decided to sell it. I didn’t tell either the bank or the buyer anything, so as not to drag my feet. I took a deposit, paid off the mortgage, removed the encumbrance and registered it as a purchase and sale. The hardest thing was to persuade the buyer to wait a week for the deal.”

Who sells apartments with a mortgage and why?

Of the many reasons why people try to sell an apartment for which the mortgage loan has not yet been paid, we note the main ones:

• Inability to service the mortgage. The homeowner has lost his job or other source of income and is no longer able to make large monthly payments.
• The desire (and ability) to improve living conditions. This year, the growth in lending for home purchases in the Russian Federation has already exceeded 30%, and the interest rate is decreasing. New opportunities are emerging. Selling an apartment provides the missing funds to buy a new, larger living space.
• Family or domestic circumstances. Divorce, wedding, bad neighbors, significant shortcomings of the apartment revealed (not necessarily cracks in the walls - maybe a change in public transport routes or the construction of a noisy shopping center next door).

Who buys apartments with a mortgage?

In 99 percent of cases, an encumbered apartment put up for sale is sold at a significantly reduced price. For an experienced realtor, such offers are a bonanza, so most often they are the first to respond to advertisements. In addition, real estate specialists are risky people; for the sake of a good profit, some of them are willing to pay in advance. And if you agree to move the price by 20-30 percent from the market price, you can use the urgent redemption service.

Also, realtors (of course, experienced and competent) can be useful if you need to convince doubting and fearful buyers. It is the latter, who do not have large sums of money, but want to buy a larger and better apartment, who are the second category of home buyers with a mortgage. They agree to a complex deal for a 10 percent discount to the market price, but prefer to be led by the hand of an experienced specialist.

Another group of buyers are connoisseurs of housing in specific houses. If your mortgaged apartment is located in a residential complex where half the city wants to live, then there is nothing to worry about: there will be people willing to accept an offer with an encumbrance.

Ways to sell an apartment with a mortgage

As mentioned above, it is impossible to sell an apartment with an encumbrance through the conclusion of a regular purchase and sale agreement. Any method of selling one way or another will begin with a trip to the bank.

There are 4 options for selling mortgaged property:

1. Early mortgage payment
2. Sale with mortgage repayment during the transaction
3. Selling an apartment along with a mortgage debt
4. Sale of mortgage housing by bank

Early mortgage payment

This method is the simplest from the point of view of understanding, and the most difficult from the point of view of finding buyers, because you need a buyer with cash. The transaction scheme is as follows: you take a deposit from the buyer, pay them the balance of the loan, remove the encumbrance and sell the apartment as free from the bank’s claims.

Stages of registration:

• We obtain the bank's consent to sell the mortgaged property. However, in some cases you will need to indicate the reason for early repayment of the mortgage.
• We draw up a preliminary purchase and sale agreement with the buyer, assuring the notary that it will protect the interests of both parties. It is important to reflect in the Agreement that the buyer repays the loan for the owner of the apartment and the balance of the debt is paid as an advance or a deposit (it is better for the seller to apply for a deposit, since if the deal fails due to the fault of the buyer, the deposit remains with the seller of the apartment); This is an important point: it allows ( at least theoretically) return the deposit if the seller suddenly changes his mind about parting with the apartment, or something happens to him.
• We register everyone registered in the apartment, including the owner. Minors are also included in this list. The settlement of the issue with the guardianship authorities occurs as in a normal transaction.
• We take a deposit from the buyer equal to the amount of the balance on the mortgage loan (you can take more, but the buyer is unlikely to be generous).
• We deposit the received amount into the bank, close the mortgage, and remove the encumbrance.
• We sign the contract and register the transfer of ownership at the registration chamber.
• We receive the remaining amount from the buyer.

pros

All stages of the transaction are simple and understandable to all parties. In addition, this is the fastest way to sell; time is limited only by the timing of the necessary procedures in the bank and government agencies. You do not depend on the bank's decision.

Minuses

This is the most risky form of selling a mortgaged apartment for the buyer. At any moment after transferring the deposit and removing the encumbrance, the seller can refuse the transaction, stop communicating, go to the hospital, die, and it will be very difficult to force him or his heirs to return the money. Notarization of the contract will be on the buyer’s side, but resolving the issue through the court can greatly delay the time frame.

Scope of application

It is precisely because of the risk that early repayment of the mortgage through the buyer is a relatively rare option, and it is used more when selling new housing that is under construction.

Real stories:

“We sold the apartment through early repayment. They reduced the price by 20%, a good area, excellent renovation - in short, they found a family. We still had 450,000 rubles left to pay under the mortgage agreement with Delta Credit. Buyers refused to pay in cash and transferred it themselves to our account. It took more than an hour to wait for the bank to prepare documents to remove the encumbrance. The buyers were shaking like a leaf. They didn’t even let us go out to smoke; hysterics immediately began: “What if you don’t come back!” We sat and talked about everything in the world to relieve tension."

Sale with mortgage repayment during the transaction

An option in which the bank participates in the transaction as the direct recipient of the deposit. The transaction itself is carried out by the seller (preferably with the involvement of a familiar realtor or on the recommendations of his friends). A distinctive feature is the use, or rather two.

Stages of registration:

• We obtain the bank's consent to sell the mortgaged property.
• Together with the bank we determine the amount of the remaining debt.
• The buyer puts money in two cells: one for the bank (in the amount of the unpaid mortgage), the second (the balance) for the seller.
• The purchase and sale agreement is signed and the transaction is registered in Rosreestr.
• Once the transfer of ownership is registered, the mortgage obligation is transferred to the buyer, and the seller receives money from the first cell to pay off the balance of the mortgage debt.
• Then the bank issues the buyer a repaid mortgage on the apartment, for which he receives an extract from the Unified State Register of Real Estate about the absence of an encumbrance. Usually all this happens at the MFC.
• After fulfilling the above conditions, the seller gets access to the second cell with the remaining money.

pros

The most secure transaction. The seller is confident that the buyer will not go anywhere, since he has already paid the bank. The buyer knows that he will be able to return the money paid to the seller’s bank in the event of force majeure. The bank is guaranteed to receive full payment of the mortgage loan and acts as a guarantor of the transaction in this scheme.

Minuses

The bank actually controls the transaction. All deadlines and specific dates are set at the request of the credit institution. This is not always convenient.

Scope of application

The most common type of mortgage home sales, used in both primary and secondary real estate.

Real stories:

“After selling my one-room apartment, I found a good two-room apartment, but with a burden. At first it was scary, but when I managed to knock off another 70 from a price that was 200 thousand below the market, I decided to take a risk. The seller received credit from Uralsib Bank. He had to pay something like 300 thousand. He promised that he would take the loan, pay off the mortgage and we would do it as a regular purchase and sale, but it didn’t work out. As a result, we rented two cells in the same Uralsib. In one I put money for the bank (those 300-odd thousand), in the other - money for the seller. The conditions for each cell were different. The bank box could be opened after I received a certificate of ownership with an encumbrance. The seller paid off the loan and removed the encumbrance. After I received a clean certificate, a box with the remaining money was opened. In the end, everyone is happy, everyone is calm - the most reasonable scheme today, I think"

Selling an apartment along with a mortgage debt

“Reborrowing” is a very common scheme used when the buyer does not have sufficient funds for the purchase. To such a buyer, along with the apartment, the mortgage obligations of the previous owner are transferred - sometimes on the same terms, sometimes on different ones (the bank evaluates the new borrower in accordance with its standards). For the selling party, this is a way to part with the property on acceptable terms and without an excessive discount. For the buyer, it is an opportunity to buy a home on better terms than with a conventional mortgage.

The buyer applies for a mortgage in the normal way. After approval of the desired amount, a mortgaged apartment is selected as the object. If the seller's mortgage was taken out by the same bank, a fundamental decision is made on the admissibility of re-registration of the collateral. If the apartment was taken out as a mortgage from another bank, the possibility of refinancing is considered (the “new” bank acts as the buyer).

The credit institution itself will re-register the liens on the apartment in Rosreestr.

Stages of registration

• We inform the bank about our desire to sell the mortgaged apartment and repay the loan early.
• We find (or the bank recommends) buyers willing to take out our apartment on a mortgage. Their down payment in cash must be no less than the remaining outstanding loan amount.
• We conclude a deposit agreement with the buyer and have it certified by a notary. In this document it is necessary to indicate from which bank the mortgage loan for which the apartment is purchased is taken out.
• The buyer makes a down payment to pay off the seller's mortgage debt. The best option is when the money is transferred directly to a bank employee.
• Removing the encumbrance from the apartment. The procedure depends on the bank. Somewhere (for example, in Sberbank), a representative of a credit institution brings the mortgage directly to the MFC or registration chamber, while somewhere the seller has to take the papers himself. The removal of the encumbrance is carried out within 3 days, this is a free service, you will only have to pay for an extract from the Unified State Register of Real Estate, which now replaces the certificate of ownership.
• We submit a package of documents (read the list below) to the bank where the buyer is going to take out a mortgage.
• We are going through the process of evaluating the apartment for sale.
• If everything is in order and the bank has approved the transaction for the buyer, we sign the purchase and sale agreement, register the transfer of ownership, and receive the remaining amount from the buyer (or his bank).

pros

Since the bank is actively involved in the transaction, risks for the parties are minimized. The buyer gets the opportunity to buy an apartment on credit at a relatively low price.

Minuses

In this transaction, it is not easy to make ends meet: in order for the seller to find a buyer, the latter has as a deposit an amount equal to the seller’s loan debt, so that the bank (or two banks) agrees to formalize the transaction... Most often, such operations are carried out by real estate agencies accredited by banks. Their services sometimes cost a lot of money.

Scope of application

Almost all transactions in which the buyer relies on a mortgage loan when purchasing a mortgaged apartment proceed according to this scheme.

Real stories:

“I divorced my husband, and the sale of the mortgaged apartment became inevitable. I decided to sell it myself. I submitted an application to the bank. There they told me that this was a formality and they do not refuse anyone. The bank specialist said that I can sell by paying off the mortgage before the transaction is completed using the buyer’s money, or by transferring the mortgage to the buyer who wants to take out a home loan from the same bank. I submitted advertisements and set the price at the lower level - there was only one apartment cheaper than mine on Avito in our area. Two buyers immediately appeared. The first - with real money, the second - with an approved mortgage in our bank. Those with cash quickly jumped out - they were afraid to pay off my loan for me. And buyers with a mortgage went through to the end. The money was put in two cells (one for the bank, the second for me and my ex-husband). We went to the registration chamber together with the buyers and a bank representative. After 5 days we received extracts from the Unified State Register of Real Estate, we came to the bank with them, took a certificate of a closed mortgage and opened our cell. It took exactly a month to do everything.”

Sale of mortgage housing by bank

If you are faced with the fourth method of selling a mortgaged apartment, things are bad. It applies if there are serious delays on the loan, or the borrower has informed the bank about the impossibility of paying the mortgage. A prerequisite is obtaining the consent of the credit institution (or the company to which the debt was sold), as well as the borrower. The latter usually has no options. The transaction is safe for both the seller and the buyer. Housing is sold through auction on specialized Internet sites.

Stages of registration:

• We obtain the bank's consent to sell the mortgaged property (most likely, the bank or they themselves will require you to make an offer to sell).
• We sign an agreement for the sale of the property by the bank's structures.
• The bank evaluates the apartment, puts it up for auction, and finds a buyer. This process can continue for a long time and be accompanied by a gradual decrease in price. The seller cannot object in this case.
• Two cells are used: in one the buyer places an amount equal to the unpaid loan, in the second - money intended for the seller. If you took out a mortgage recently, then there may be nothing in the second cell.
• After concluding a purchase and sale agreement (signed by the seller and the buyer), as well as a preliminary agreement between the bank and the buyer, the credit institution sends documents to Rosreestr to remove the encumbrance. The bank opens a safe deposit box.
• The transfer of ownership of the apartment is registered. The seller opens the cell.

pros

The seller does not need to worry about anything, the bank will do everything itself. The transaction is safe for all parties involved.

Minuses

The price is most often very significantly underestimated, since the bank is only interested in returning the borrowed money; it cares little about the interests of the apartment seller. Often the proceeds from the sale are equal to the remaining balance of the mortgage.

Scope of application

Apartments with a problematic mortgage. Banks sell mortgaged real estate only when all other methods of working with the borrower have already been exhausted.

Real stories:

“We paid the mortgage for about three years, then I had to quit my job. There was no way to make a payment of 21,000 a month. The apartment was eventually put up for auction. We were lucky - they bought it almost immediately, and the price allowed us to close the mortgage and get another 400 thousand in our hands.”

Documents for selling an apartment with a mortgage

In order for the transaction to go through without a hitch, the seller must prepare the required package of documents in advance. It will be different for different options for selling a mortgaged apartment, and we will provide a complete list here:

1. Passports of all owners of the property being sold (for minors under 14 years of age - birth certificates).
2. An extract from the Unified State Register of Real Estate (USRN) for the apartment being sold - it will confirm that you are the owner and the housing is free of encumbrances.
3. Technical passport of the apartment. If it is not there, hurry up and order through the BTI or MFC, since this document is not completed quickly.
4. Certificate of form No. 9 (extract from the house register) - it reflects the list of persons registered in the apartment. If at the time of sale there is at least one name there, the bank will close the deal.
5. A certificate from the management company or homeowners association confirming that there is no debt on utility bills.
6. If there are minors among the owners, you will have to obtain permission to sell from the guardianship authorities. They will give it only if the deal does not worsen the child’s living conditions. Accordingly, it will be necessary not to submit documents not only for the sale of an apartment, but also for the purchase of a new one. Please note: permission is issued only with the participation of both parents (guardians, adoptive parents) in the process, even if they are divorced and live in different parts of the world. The application review period is 14 days.
7. An apartment purchased during marriage, but registered in the name of one of the spouses, cannot be sold without the consent of the second spouse, including if the family has officially broken up. Consent must be obtained from a notary (cost is about 1,500 rubles, depending on the region).
8. Apartment appraisal certificate. The company performing the appraisal is usually recommended by the bank itself. In any case, she must have a license to provide such services. The cost of the assessment, depending on the region, is usually 3-5 thousand rubles.

Frequently asked questions about selling an apartment with a mortgage

How are taxes paid when selling a mortgaged apartment?

– Tax regulation is the same as for ordinary housing: if you have owned the square meters for more than three years, you do not pay anything when selling for any amount. But if you have owned the apartment for less than three years, and you sell it at a higher price than you bought it for, you will have to pay a tax of 13% (you can get a deduction of 1 million rubles once). It will not be possible to evade, since the transaction is controlled by the bank, and the amount in the purchase and sale agreement will be stated correctly. By the way, for real estate purchased after January 1, 2016, the tenure period for tax exemption is set at 5 years.

Is it possible to sell an apartment taken on a military mortgage?

– In short: it’s possible, but difficult. Military mortgages are regulated by a special law - No. 117-FZ “On the savings and mortgage system of housing for military personnel” dated August 20, 2004. According to this document, an apartment purchased using a targeted loan from the Ministry of Defense remains pledged not only to the bank, but also to the military department until the loan amount is repaid or until the recipient has completed 20 years of military service. Most often, the sale procedure comes down to finding funds to repay a targeted housing loan. Otherwise, everything is the same as in the first option described above: Rosvoenipoteka is notified of the desire to sell the home, the balance of the debt is paid off, the encumbrance is removed, then a regular sales contract is concluded with the buyer.

How to sell a mortgaged apartment purchased using maternal capital?

– The biggest difficulty in such a sale will be the need to allocate shares to the children (the parents sign the corresponding obligation at the notary when registering the capital). Rarely will a buyer, after paying the down payment to pay off the mortgage, wait until you register the shares. In addition, in this case, you will have to coordinate the deal with the guardianship authorities, who will require, along with the documents for the housing being sold, to provide information about the property being purchased (the shares of the children should not decrease). Therefore, today parents most often take risks: they sell mortgaged housing without registering their children’s shares in it. Over the past three years, the Pension Fund of the Russian Federation has sharply intensified control over the targeted use of maternal capital, so such actions may threaten the cancellation of the deal. In addition, if, upon reaching 18 years of age, children decide to protest the decision of their parents, who “forgot” to allocate shares, the purchase and sale will also be considered illegal.

What risks can the seller and buyer face when transacting a mortgaged apartment?

– The seller risks virtually nothing. The bank's lien rights are registered in Rosreestr, which means that no one can deprive a person of their housing until the encumbrance is lifted and the transaction is completed.

But there are a lot of risks for the buyer. If the seller has not received the bank's consent to sell, the transaction may be challenged. Theoretically, the seller, after receiving the deposit and removing the encumbrance, has the opportunity to “jump off”, and getting money from him will be problematic. Moreover, he does not necessarily do this deliberately. For example, problems may arise with title documents, with guardianship authorities, and so on. Force majeure circumstances may occur: illness, death, fire - you never know the number of force majeure cases! Again, returning the deposit will be fraught with enormous difficulties.

Due to the high cost of real estate, not all citizens can purchase an apartment, so they often buy housing using mortgage lending. The low level of transparency of the process and deferred payment for real estate lead to the fact that many believe that the seller’s risks when selling an apartment with a mortgage are several times higher than a standard cash sale.

Mortgage lending procedure

In order to understand what risks and pitfalls exist when purchasing real estate with a mortgage, you need to know the bank’s algorithm of actions from the day you apply for a loan until the funds are transferred to the seller’s bank account.

Let's look at the individual stages of the transaction:

• checking the condition and presence of encumbrances, assessing the condition and market price of the property;
• preliminary procedures before concluding a transaction;
• registration of an encumbrance on the ownership of an apartment;
• transfer of the full amount specified in the mortgage agreement.

Review and evaluation processes

This stage is one of the main ones, since it is based on the results of the inspection that the bank makes a decision regarding the liquidity of housing, its real price and the possibility of a transaction on it.

An audit of the technical condition of an apartment includes inspection and assessment of:

• building structures and floors, partitions;
• communication networks, heating and water supply devices;
• door and window openings;
• electrical wiring, sockets and switches.

The inspection of the apartment takes place in two stages: first it is inspected by possible buyers, and then by a representative of the lender.

In the case of the sale of secondary housing on a mortgage, the seller’s risks at this stage include a possible inspection of the housing and its layout for compliance with technical documentation, since not all apartments have undergone redevelopments that have been appropriately legalized.

Algorithm for selling an apartment with a mortgage

Let us understand in detail the step-by-step actions to complete the transaction. Such a mortgage sale is strictly regulated by law, so every citizen will be able to understand the scheme. With such a transaction, the potential risks of the seller and buyer are minimal.

Algorithm for selling a home with a mortgage:

1. The seller and buyer come to an agreement on the nuances of the mortgage transaction.
2. A preliminary agreement is concluded, the buyer makes a deposit, and the seller writes a receipt for the amount of money received.
3. Appraisal of the apartment by an independent expert.
4. The buyer provides the seller with the documents required by the bank; this is required to minimize the risk of fraud on the part of the seller.
5. After the bank has approved the transaction, the main agreement is concluded between the parties on pre-agreed terms.
6. The transaction is registered in Rosreestr.
7. The buyer receives an extract from Rosreestr about the ownership of the apartment.
8. Both parties go to the bank, which transfers the amount agreed upon in the contract to the seller’s account. At the same time, a mortgage lending agreement is drawn up with the buyer.

Risks in estimating value

If the housing is in good condition and suitable for moving in and living in, then the bank conducts an independent expert assessment of the cost of square meters. The valuation expert is selected exclusively by the banking institution.

The presence of the following parameters significantly reduces the market price of an apartment:

• inconvenient location - distance from the metro or transport stops, supermarkets;
• age of the building - if the building was built a long time ago, then the condition of communications and ceilings is considered not to be of very high quality.

After such an assessment, a conclusion is issued on the maximum possible price of the property, the report is handed over to the seller, the buyer and sent to the bank. This way you can avoid artificially inflating the price by the seller.

Risks when transferring funds

When selling a home with a mortgage, there are also possible risks for the seller at the stage of transferring finances. After completing all stages, the bank decides to conclude the transaction. A mortgage agreement is concluded between the bank and the buyer, on the basis of which the apartment is immediately transferred to him, and the money is credited to the seller’s account. But before this, state registration of the property rights of the new owner is necessary.

The period between the transfer of ownership rights and the actual receipt of money seems extremely risky to many citizens.

However, we note that in 2017 there is a legal provision regarding mortgages, according to which no more than 10 calendar days are allocated for the transfer of money after the re-registration of property rights. If the money is not transferred, the transaction is declared invalid, and the housing goes back to the previous owner.

Receiving funds without risks

When transferring by bank transfer in case of loss of money, its movement can be tracked and the moment where it went to the wrong address can be found.

When paying in cash, there are more risks for the seller:

• the transferred finances may be counterfeit; the authenticity of the banknotes can only be verified at a banking institution;
• When paying in cash, the bank will not be able to provide assistance to the homeowner, since representatives of the banking institution are not present when transferring cash.

Seller's risks when selling an apartment with a mortgage

One of the most significant risks for a seller is non-receipt of funds after completion of the transaction, however, when selling a home with a mortgage, such risks are minimized:

• the transaction is under the careful control of the bank, basically the bank itself transfers funds to the seller and controls this process;
• when depositing money into a safe deposit box or transferring it to a special account, it is already the property of the seller; all that is required is confirmation of ownership;
• If funds are not received into the seller’s account, the transaction can be challenged in court and declared illegal, after which the apartment is returned to the seller.

Other risks for the seller are present if the bank has not made a positive decision on the mortgage loan. There are many reasons for refusal, but the security service does not disclose them. Then the seller’s risks lie only in the need to return the deposit amount, since the transaction did not take place not through the fault of the buyer, but through the fault of the bank.

It is illegal for the buyer to demand that the deposit be returned in double amount, since the seller does not waive his obligation to return. Therefore, to prevent risks, the seller is not recommended to spend the funds received as a deposit in advance.

Video about possible risks

So, the process of selling an apartment on a mortgage is designed to minimize the risks of both parties to the agreement. If funds are transferred by a bank, then the risks of non-payment or payment with counterfeit bills are reduced to zero. More real risks appear if the bank has not yet made a positive decision on issuing a mortgage loan, and the seller has already managed to spend the deposit received.

Selling an apartment with a mortgage is common in the real estate market, as it is an opportunity for young families who do not have one to acquire housing.

But this process for sellers is slightly different from a standard purchase and sale. Therefore it requires special attention.

Is it possible to sell an apartment with a mortgage?

Mortgage lending is a form of cash loans that are provided to citizens secured by real estate, which acts as a guarantee of repayment of the amounts received.

Based on this, banking institutions willingly provide loans for the purchase of housing, which automatically becomes the subject of collateral (mortgage). That is, after full fulfillment of their obligations, borrowers become full homeowners.

The banks where borrowers apply give money not only for the purchase of housing in new buildings (primary real estate market) but also for those that are owned by other citizens (secondary housing market). Therefore, any owner can sell an apartment with a mortgage.

It can be immediately noted that the sample contract for the sale and purchase of an apartment on a mortgage is no different from the standard one. Banking institutions are not written in them as parties to the transaction.

It is important to know that the sale of housing on a mortgage requires mandatory registration of ownership rights to the buyer.

Seller's risks when selling an apartment with a mortgage

Of course, most citizens who decide to sell their home with a mortgage are interested in the possible risks of such a transaction.

The established legal practice on such transactions indicates that there are no such transactions for sellers at all. This is due to the fact that there is a certain procedure for checking an apartment or other residential real estate by the bank, as well as the lack of contact in the transfer of funds between the seller and the buyer.

Simply put, the bank's security service first checks the buyer for solvency, and then the property itself for encumbrances (arrest, mortgage, pledge), its technical condition, the availability of relevant documents, and valuation.

If the borrower is trustworthy and the property meets the reliability requirements, then the bank independently transfers funds to the seller’s account, and they are guaranteed to arrive. That is, fraudulent actions on the part of the buyer are completely excluded.

This scheme makes the transaction safe from all sides. The only disadvantage for the seller when an apartment is sold through a mortgage is the inability to overcharge.

Artificially inflating the cost of an apartment with a mortgage is a risk for the seller. This is due to the fact that the credit institution obliges the future buyer to conduct a regulatory assessment of the cost of housing, which is done by a licensed specialist.

And exactly the amount that is indicated in the appraisal report will be transferred to the seller.

These are the pros and cons of selling a home with a mortgage.

It is important to know, that in such transactions there is a risk of loss of the deposit, which will be transferred to the seller by the buyer. In any case, before the sale, a preliminary agreement is signed, and only then the bank begins to conduct an inspection. If the loan is refused, it means that the buyer automatically cannot complete the transaction, and the deposit is not returned to him.

Sales procedure

The procedure for selling residential premises with a mortgage is slightly different from similar transactions carried out without the use of loans.

Its difference is that the bank gives the money, so this transaction is characterized by some features, which will be discussed below in the form of step-by-step instructions.

Step-by-step instruction

In order for the future seller in such a transaction to know in detail his rights and obligations, how to sell an apartment with a mortgage, step-by-step instructions are provided.

1. First of all, you need to prepare all the necessary documents. A list of them will be given below.
2. Then you should meet with the buyer and discuss the details of the transaction. He must inform that he is going to buy housing using a mortgage loan, and first inspect the apartment itself. For this purpose, it is better to do this in the presence of a specialist who will carefully examine the communications and the general condition of the property. This step will protect both the buyer and the seller from a possible bank refusal of a loan due to the poor condition of the apartment.
3. Next step. When all agreements have been reached, the parties must sign a preliminary purchase and sale agreement. This is a mandatory requirement, since on the basis of it a deposit is transferred and it is shown to the banking institution, which is the basis for starting an inspection of the borrower and the property.
4. Next banking institution(his representatives) contact the seller and discuss with the latter a specific time when they can inspect the residential premises with their specialist, and the buyer, at his own expense, must contact a licensed appraiser and receive from him a certificate of market valuation (value) of the residential premises, and insure his.
5. If the buyer, seller and bank are happy with everything, then a purchase and sale agreement is signed, and the seller is transferred the required amount to his account, or given in cash at the bank’s cash desk. That is, the sale of an apartment or other residential premises is being formalized.

This is how the sale of real estate with a mortgage takes place; as you can see, there is nothing complicated about it.

It's important to understand that different banks may set their own additional requirements for mortgage insurance.

List of required documents

The procedure for selling any real estate involves collecting the necessary documents. If a realtor is involved in resolving this issue, then he will collect them.

If the seller decides to save significantly, then he has the right to prepare pre-sale documents.

The list of necessary documents for the sale of an apartment from the seller will be as follows:

• certificate of ownership, or other document confirming this fact (for example, a municipal order if the apartment has been privatized);
• an extract from the state register stating that there are no arrests, pledges, or other restrictions on residential real estate;
• technical documentation (passport, cadastral file), if there have been redevelopments, then it must be updated;
• an extract from the house register, passport office on the number of registered persons;
• a certificate from utility companies stating that there is no debt on utility services for the housing;
• if real estate is sold where a child or other person in need of care lives or is registered (for example, a disabled person of the first or second group), then permission from the guardianship authority is required that they are not against the sale;
• If the residential premises belong to several owners, then their written, notarized permission to alienate the apartment or house is needed, since they will receive funds equal to their shares.

The buyer himself will be required to provide an appraisal report for the purchased property, as well as insure the property.

It is important to note, that the features of such documents as a certificate of registration (extract from the house register), as well as a document on the absence of debts for utility services, have a limited validity period of no more than 2-3 months. Therefore, it is better to order them before concluding a transaction.

Some nuances of such transactions

In principle, as can be seen from the above, there is nothing complicated in selling an apartment with mortgage lending. But there are differences in processing such a loan in some large banks, and the issues of military mortgages and the sale of an apartment that is already pledged to a lending institution deserve special attention.

How to sell an apartment with a mortgage through VTB 24

VTB 24 is one of the largest banks, so many citizens use its loan programs to buy a home with a mortgage. Therefore, many are interested in the question of how housing is purchased with the participation of VTB 24 loan programs.

This bank sets minimum requirements for the property and offers its clients credit funds issued at the bank's cash desk or directly transferred to the account. If money is issued at the cash desk, then you will not have to pay interest for cashing it out, that is, the buyer will receive the entire amount without commission. This is a beneficial advantage.

But due to the fact that the bank does not check its borrowers as carefully as other institutions, the interest rates on such loans are high.

It's important to understand that the best credit conditions at VTB 24 (minimum interest) are provided to those citizens who have salary or other credit cards open in this bank.

In Sberbank

Sberbank is also the largest bank, and a significant part of the population turns to its branches to buy housing on credit.

Its programs are characterized by low interest rates, but strict requirements for borrowers. In addition, it is profitable to take out a military mortgage from this financial institution (it is an official partner of the state), as well as to buy housing that is already secured by other banks (mortgages).

But the only drawback is that the funds for the apartment are transferred to the seller’s bank card, so in order to avoid a large cash withdrawal fee, it is better for the latter to open an account with this credit institution.

It is important to know, that in some cases the seller and buyer can agree among themselves that the latter will compensate the funds lost during cashing out to the former owner.

To a military mortgage

A military mortgage for the seller of an apartment presents some additional requirements for his residential premises. This is due to the fact that this program is designed for a long period, plus military housing must meet certain criteria.

These include the following requirements:

• the residential premises must have all communications, that is, connected to a centralized heating system, sewerage, water supply, gas supply;
• the house where the apartment is located should not be classified as unsafe or subject to demolition;
• all load-bearing structures of a multi-storey building and residential premises must be in good condition and not be recognized as unsafe;
• The multi-storey building itself must stand on a brick, reinforced concrete or tile foundation (foundation), which should not have significant wear.

Private houses must have all sewerage and plumbing components (toilet, bathroom, washbasin), a working roof and structural elements. If, according to the assessment, such a residential premises requires major repairs, then the loan will not be given.

Also, there is one more feature that the seller should be aware of. After signing the preliminary agreement, he will not be able to immediately receive the deposit, since these funds are withdrawn from the buyer’s savings account and transferred to the seller’s bank account within 7 days.

This period of time is also used to evaluate real estate. The specialist determines the cost and its technical condition. Therefore, in order to sell an apartment with a military mortgage, you need to spend more time on the process of completing all the documents.

How to sell a mortgaged apartment?

If the seller decides to sell a home that is under a mortgage, then he should familiarize himself with the additional nuances of such a transaction.

First nuance is that you first need to notify the bank that has placed the encumbrance on the residential premises about your intentions, and obtain their consent to this procedure.

Second nuance is that the seller must obtain a certificate stating that he has no debt on the loan and provide it to the buyer if the latter takes out a mortgage loan from another bank.

The funds for such real estate will be transferred to the seller after the remaining interest and the loan balance, which he had to repay according to the schedule at the time of sale, have been deducted from them.

Important to remember, that there are situations that after drawing up a purchase and sale agreement for real estate taken on a mortgage, the banking institution does not transfer the funds, although the ownership has already been registered in the name of the new owner. There is no need to panic, you just need to contact the state registry and inform its officials that the funds have not been transferred. They are automatically obliged to cancel the registration of ownership and restore it to the seller.

Selling an apartment with a mortgage is not difficult. You need to collect the necessary package of documents, evaluate it, and then have the purchase and sale agreement certified by a notary. The money for the sold home will be transferred by the bank where the buyer took out a mortgage loan.

Welcome! Is it possible to sell an apartment with a mortgage and how to do it correctly? Today we continue to answer questions from our readers and in this post we will talk about whether it is possible to sell an apartment purchased with a mortgage, how to sell an apartment with a mortgage, and you will also learn all the nuances when registering an apartment through a mortgage.

There are several reasons for selling an apartment that still has a mortgage:

1. Inability for the borrower to pay monthly installments. In this case, selling an apartment with a mortgage will be an excellent way out of the situation: the borrower will not have debt to the bank.
2. This is an exchange due to family expansion or divorce. Selling an apartment with a mortgage will become simply necessary in this case.

An apartment with a mortgage is the bank's collateral, so in order to sell it, you must obtain permission from the financial institution that issued the loan to you. If you don’t know how to sell a mortgaged apartment, first find out whether the bank will give you permission to do so.

Firstly, the bank benefits from the sale of the apartment with a mortgage and, accordingly, the full repayment of the mortgage debt on your part, so it is unlikely to prohibit such a transaction if you can no longer repay the loan.

But, secondly, if the bank sells your mortgaged home and repays the mortgage, it will lose its interest, and this may be a reason for refusal. The bank can also refuse if you have violated its rights to the collateral property - for example, you have carried out redevelopment of a mortgage.

You can be one hundred percent sure of the bank’s consent if the sale of a mortgaged apartment is specified in your loan agreement, but this is rare.

But no difficulties in pre-selling an apartment with a mortgage can be compared with the possible litigation that will certainly arise if you simply stop paying monthly rent. Therefore, if you can no longer afford large monthly payments, sell the apartment that is under mortgage as quickly as possible.

There are 4 most common ways to sell an apartment with a mortgage:

1. Early repayment at your own expense;
2. Early repayment at the expense of the buyer;
3. Early repayment at the expense of a real estate agency;
4. Sale under a special bank program.

At your own expense

The bottom line: you independently raise money in the amount of the remaining debt to the bank, and pay it off. After which you remove the encumbrance and can safely sell your property. To repay a loan, you can use it if income allows, because when calculating solvency, current obligations will be taken into account.

• It is difficult to find a sufficient amount on your own;
• When applying for a loan or loan, it is difficult to qualify for a large amount due to existing obligations.

You can quickly and legally close your mortgage and remove the encumbrance for sale

At buyer's expense

The bottom line: you find a buyer who agrees to buy an apartment taken on a mortgage. The buyer provides you with an amount with which it is possible to repay your debt ahead of schedule (a receipt is issued to the buyer for this amount). The borrower selling the apartment makes an early repayment and closes the loan. Then he removes the encumbrance and sells the apartment to the buyer (a mortgage for the balance is possible).

• It is difficult to find a buyer willing to buy an apartment with an encumbrance;
• Not all buyers have enough money to remove the deposit on the property.
• The buyer will ask for a discount on such housing.

• Legal transaction
• Benefit for the buyer

Through a real estate agency

The bottom line: a real estate agency issues a loan to the seller in the amount of the loan balance. After this, the mortgage encumbrance is removed from the apartment and the apartment is sold.

• Quite a high interest rate on the loan from 18% per annum;
• Expenses for real estate services.

• Good for a borrower who simply does not have time to independently sell collateral real estate.
• Beneficial when moving.
• There is no need to contact the bank to apply for a loan.

Special bank program

The bottom line: for a buyer who can buy out a mortgaged apartment through a mortgage, there are special programs in banks. The potential borrower provides a standard package of documents and waits for approval of the application for the specific apartment that has already been found, which is in lieu of the same bank. Next, a loan is issued to the buyer and simultaneous repayment of the seller’s debt to the bank, and after that the transaction is registered in justice.

• Not all banks operate under such a program;
• Both mortgages must be from the same bank;
• The registration procedure is complex and not all bank employees are competent.
• It's difficult to find a buyer.

• Legal sales scheme.

Step-by-step instructions for completing a sale

Now you already know the answer to the question: is it possible to sell a mortgaged apartment on credit? Yes, this can be done and there are four options for how to do it. Next we will look at the step-by-step instructions , how to sell an apartment purchased with a mortgage using bank borrowings.

A common way to sell an apartment to an insolvent borrower is through refinancing - that is, the bank sells the collateral apartment. Average market conditions for the sale of such real estate are as follows:

• Housing: secondary and primary markets;
• Amount: from 300,000;
• Interest rate: from 10.75%;
• Repayment period: up to 30 years;
• Down payment: from 15%;

Standard package of documents for an application:

• Application for a mortgage;
• Passport;
• SNILS;
• A certificate confirming your level of income or tax return for the last year;
• A copy or extract from the work book;
• Military ID (for men under 27 years old).
• Marriage and birth certificates (if applicable).

At the same time, we must not forget that the bank may at any time require any additional documents from you.

How to sell an apartment with a mortgage on credit? You can apply for a loan for collateralized real estate at any branch of the bank of your choice. To do this, the buyer needs to perform the following algorithm of actions:

1. Submit a loan application - in some banks this can be done online.
2. The bank makes a decision on the application within 5 working days on average.
3. After the application is approved, choose an apartment
4. If the apartment is encumbered, the mortgage must first be repaid using one of the above methods. has been described in detail previously.
5. Bring the necessary documents to the nearest bank branch for the selected option:

• For secondary buyers: preliminary agreement, seller’s passport, housing certificate, appraisal, cadastral passport, extract from the house register, basis agreement and other documents at the request of the bank, receipt for the first payment.
• For the primary: dd, seller’s passport, documents for payment of dd, assignment of rights of claim.

1. Receive confirmation of the accuracy of documents and final approval.
2. Take out insurance and enter into a loan agreement.
3. Register the transaction in the Russian Register.

How does an independent sale by a bank take place?

How does the sale take place in this case? If you do not repay the loan for a long time and do not restructure such debt, the bank can take away the apartment from the borrower and independently sell it in accordance with the law.

There are two options:

1. The bank, by a court decision or agreement with the borrower, becomes the owner of the property and sells it at its own discretion. In this case, the borrower may still have a debt to the bank that will need to be repaid. This occurs due to a difference in price or if there was a foreign currency mortgage and the exchange rate soared. This option is the most disadvantageous for the borrower because... the bank will sell such real estate significantly below the market.
2. The client himself finds a buyer and independently sells the apartment at his own price. The option is more profitable. We talked about it above.

Is it possible to sell an apartment purchased with a mortgage for good money? Considering the fact that buyers in the real estate market do not like apartments with encumbrances, it is quite logical that collateralized real estate costs much less than any other. Experts note that the difference can reach 25%.

The value of the collateral property is determined by the bank and is guided in this matter by the following factors:

• The amount of total debt the borrower has (including penalties, penalties and interest);
• The duration of the borrower's delays in mortgage payments;
• Condition of housing, etc.

It is important to understand that, as a rule, banks use the services of a realtor when selling their collateral real estate for cash. The amount for which an apartment with a mortgage will be sold is largely determined by his professionalism.

Practice also proves that a mortgaged apartment in good condition and with excellent characteristics can be sold for the full market value, and if the apartment was bought in a new building and at the time of sale it is fully equipped, even more expensive than its original cost. This can be beneficial, for example, for selling an apartment during a divorce.

The bank's requirement to sell the collateral apartment contains opportunities for the borrower to avoid this. There have been cases when a borrower was forced to put his apartment up for sale and deliberately inflated its value so much that it simply could not be sold. This time was enough for the borrower to restore his financial position and continue to pay his mortgage properly and regularly.

However, all this applies only to those cases when the sale of an apartment with a mortgage is carried out voluntarily. In some cases, when it is impossible to obtain a sale from the borrower from the bank, the financial institution can take back its collateral in court.

In this case, the apartment will go under the hammer and much cheaper than it could have been sold. And if the bank’s expenses for such proceedings are not covered after the sale of the collateral real estate, then the bank will have every right to collect the balance of the debt from the borrower, even with the help of the court.

Don't take things to the extreme. There would be a desire to be able to pay off the debt. You may not have heard, but it exists. State support reaches 1.5 million rubles. Read more in our previous post.

Maternal capital

But maybe you don't want to sell your home, but you're having a hard time paying off the debt. One of the ways to keep an apartment as collateral from the bank, for which it is no longer possible to pay the mortgage, is. Typically, it is provided on a targeted basis. If these conditions suit you, you can apply for it in the following few steps:

1. Submit an application to the nearest Pension Fund branch. In the application you must indicate the details of the recipient of maternity capital.
2. Within two months, the Pension Fund transfers maternity capital funds to the bank.

Thus, you receive maternity capital funds not in parts, but in whole.

Pros and cons

Naturally, such operations seem quite risky to buyers - anything can happen. If the advantages of buying an apartment with an encumbrance are obvious (low price, mortgage interest is much lower), then you need to pay attention to the disadvantages.

Purchasing real estate under a mortgage:

Firstly, repaying the mortgage debt for the seller of the apartment is quite risky for the buyer. If it is not documented in any way that the buyer has any rights to the apartment, then the seller can simply use his prepayment, remove the encumbrance from the apartment and use it at his own discretion - the deposit has been removed, he can make absolutely any transactions with it. Therefore, the buyer can protect himself only if he cooperates not with an individual, but with a bank or agency.

Secondly, re-registration of an apartment if it has a mortgage and removal of the encumbrance from it entails additional costs for the buyer.

Third, the buyer should not pay the money owed to the borrower before their deal is approved. After all, it may turn out that the seller is prevented from taking his money by a financial institution due to a refusal to accept the transaction. Perhaps this risk is beneficial for the buyer - he can legally take both the funds and the purchased apartment for himself, but this situation entails inevitable proceedings.

When selling an apartment with a mortgage, the seller’s risks usually include:

• The buyer refuses the transaction when money has already been deposited in the bank. This entails an obligation to return them back, and this will be problematic.
• The bank's refusal to issue a loan for an apartment to the buyer.

If you have difficulties with such a transaction and you need to sell or purchase your own home under a mortgage, we recommend that you first consult with our lawyer. Ask him a question in a special form. There is currently a free promotion.

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Most people do not have sufficient financial security to buy an apartment. They purchase it by receiving a bank loan. Due to this, the purchased apartment is a guarantee that the loan and interest will be repaid. For the entire period of debt repayment, the ownership of the acquired property is “frozen” by the bank. The owner does not have full control over the apartment.

Encumbrances on real estate and their removal must be registered with 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 mortgaged apartment is not very profitable. The seller has to reduce the price due to the fact that the attractiveness of the property is significantly lower compared to ordinary apartments. In addition, moral and time costs increase significantly. You have to enter into many agreements with the bank, the registration chamber and 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 with a mortgage

The apartment loan is valid for 10-20 years. During this period, many want to improve their living conditions by purchasing larger housing. Options may vary. Even if the property is under a mortgage, the property is in the buyer's name and he can sell it despite the restrictions. There are several such methods. All of the above schemes imply a certain order of actions.

Early repayment of debt before purchase and sale

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

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

Otherwise The buyer can buy the home, if he is very interested in it. The motivation for this may be the desire to live in the area or an acceptable price for housing.

All activities for the sale of an apartment can begin after receiving the consent of the bank. It all depends on how the agreement with the borrower is drawn up. 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 willing to pay for the encumbered property. To begin the sale, all residents must check out of the apartment..

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

• cash (the most unlikely and unsafe method);
• to the seller’s account in the bank that issued the loan;
• the buyer deposits the required amount to repay the loan, after which the bank immediately lifts the ban on the alienation of real estate.

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

Involving a lender in a transaction as a third party

The protection of the rights of both parties is ensured by the involvement of a 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. Although the buyer deposits funds to repay the loan into the seller's account, the lender is notified of the transaction, thereby preventing fraud.

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

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

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

Having received the bank's consent to the transaction, the buyer places money for the apartment in 2 deposit boxes of the creditor bank. In one he puts the amount of debt for the mortgage, and in the next - the remaining funds. Only after this are purchase and sale agreements signed and applications are submitted to the registration chamber. After receiving documents confirming the buyer’s property rights, the bank can withdraw 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.

1. Preliminary registration of the purchase and sale agreement

Having completed the purchase and sale agreement in advance, the buyer gives the seller an advance in the amount of the loan balance. The seller repays the loan with this amount. Then the bank removes the encumbrance from the apartment, issuing a document stating that the mortgage has been paid. Next, ownership rights are registered with the Federal Migration Service for the buyer, who then pays the balance of the amount to the seller and assumes the rights of the owner of the apartment.

Replacement of borrower

Although rare, the bank can replace the borrower on the loan. The reason may be problems with payments that arose with the original borrower. The most common option is when the buyer takes out a loan from the same bank. After explaining the reasons, a petition is submitted to the lender with the documents of the new borrower. The package is exactly the same as the one the seller had when he took out the loan. It includes documents proving identity, financial status, legal capacity and marital status.

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

The bank does not always agree to approve a new borrower, since he may not have enough income.

If the decision is positive, a loan agreement is concluded with the new borrower and funds are allocated to pay off the seller’s debt. The mortgage and title are then transferred to the new owner.

The interest that has accumulated is paid off by the seller, since it has nothing to do with the cost of the apartment. This is a payment to the bank for providing a loan.

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

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

An extreme case is the forced sale of an apartment by a creditor. But this is the last resort that the bank takes when the apartment owner cannot repay the mortgage and find a new borrower. In this case, the bank unilaterally looks for a new buyer for the apartment, taking over the rights of the mortgagee. If the proceeds from its sale do not cover the amount of debt, the borrower is obliged to add the missing funds. This method is the most unprofitable for him and should not come to this.

Conclusion

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

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