Want to sell your home but still paying off your credit? Find out how to proceed.
Buying a home is perhaps one of the biggest investments you will make in your life. However, families increase, tastes change, needs to move to another city for work, or you may simply feel at some point that you need a change in your life and that moving house is a step you want to take. .
He starts to pay more attention to the houses available on the market, makes some phone calls and even has plans for his future home when he remembers “can I sell this house if I'm still paying off the credit?”.
Yes, it is possible!
Continue reading this article and we will explain everything to you.
Request a “Mortgage Distraction”
If you want to sell your home that has a mortgage, you will have to cancel it. When the time comes for the new owner to make the deed, the property should not have any type of encumbrance or charges associated with it.
Cancellation is done through the “Mortgage Distrate” that must be requested from your bank - the document that confirms that the debt has been settled and that the contractual obligations have been fulfilled.
This document is provided by the creditor at the time of the deed of sale.
Who should handle this cancellation?
Case 1: An application for a “Mortgage Distraction” and a new mortgage are made together
If you sell the property, the lawyer, notary or solicitor who signed the purchase and sale agreement with bank financing will be responsible for registering the new owner, the new mortgage and the cancellation of the previous one.
Case 2: There is only one Mortgage Distraction request alone
If you want to make this request because you made the credit settlement in full before the contractual deadline, you will be responsible for requesting the document from your bank and registration at the respective Land Registry Office.
Can I use my current credit to buy the new house?
It is not possible to simply transfer the current credit to buy another property, since each mortgage credit has a property as collateral associated with it. Thus, needing to use credit to pay for the new house, you will have to go through the credit approval process again with the conditions that are in force at the time you start your application.
To clarify your doubts on the subject of housing credit, you should consult a professional to help you, do it through a professional from our Team!
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