Property Sale At Belgravia Green Villas Condo

A mortgaged property sale simply refers to the sale of a property that still has an existing or an ongoing loan balance. In most cases, this should not present any sort of problem for a seller and this is extremely common with most sellers. Hopefully, if sellers either worked with a real estate agent or made a calculation on their own, they should start with a “positive sales” price to make sure that you can easily cover the outstanding mortgage at closing. Of course, the first step for a seller is to check with their mortgage company or bank to see how much money they owe on their mortgage. This is to facilitate a proper accounting and to make sure you are not selling at a loss.

When Mortgaged Property Sales Are Not Simple

When the sales price covers the loan balance, you can be assured that this existing mortgage balance gets paid off during the closing of a property. Of course, you must pay off other fees which will be subtracted from the sales price, and rest, the seller gets to keep as sales proceeds. Be warned, if the mortgage has an escrow, the seller may also get to refund a prorated amount for taxes and insurance. This is a simple example of a mortgage property sale with “positive sales”.
In other circumstances, this process is not as simple as it seems. Please do take a moment to consider all scenarios as some examples of cases of mortgaged property sales might be more complex than others:


Image of a property in Spain

Short Sales

What is “Short Sale” or “Negative Sale”, when the sale of a property at market price or sold price is lower than the remaining balance or outstanding loan. This normally happens during a downturn in the housing market or because the property owner has an urgent need to move or relocate for other reasons. Of course, this isn’t an ideal time to try to sell a house; however, the property owner may still have some options.
In this case, it may be possible to approach a lender with an agreement to take a reduced sum to settle the outstanding loan balance. If the lender does agree to a short sale, they may also work with the seller to complete the transaction quickly. Lenders may agree to accept less than they were owed because they figure they will take less of a loss than if they had to pay to pursue a foreclosure and wait even longer to collect any money at all.

Assumed Mortgages

Assumed mortgages refer to agreements that allow a new lender to simply assume the old mortgage. These used to be more common when interest rates were higher. Also, most lenders have tightened up their lending standards a lot in the past decade. Some mortgages do have a clause that allows this within the contract, but these are usually either VA or FHA loans. Of course, assuming a loan may be very attractive if the old loan had lower interest rates.
Lenders will typically only allow an assumed mortgage if the new borrower meets their borrowing standards. Otherwise, they are likely to want the new borrower to apply for their own new loan.

Prepayment Penalties On Mortgages

A prepayment penalty is one issue that is more likely to catch average sellers. This is particularly true if the seller wants to sell their house in the first few years after they have taken out a new loan. The lender may have buried the terms for how much of a loan can be paid off at a time within the terms of the mortgage agreement. Paying off the entire loan balance during a sale could generate a prepayment penalty.
For instance, a lender may have terms that say a borrower cannot pay off more than 20 percent of the existing loan balance in any one of the first three years. In some cases, they will allow an outright sale and only have this penalty for refinancing, but a few lenders will impose these penalties under any circumstances. Naturally, lenders would rather have borrowers make payments on time, but they would also prefer borrowers extend the loan if possible in order to keep charging interest.
While these penalties can vary quite a bit, these are some examples of typical penalties for repaying the loan too fast:

  • The penalty will typically only last for the first one to three years of the loan.
  • Some of these penalties may be as much as 80 percent of interest payments for the next six months.

Even if the lender charges 80 percent of the interest for six months as a prepayment penalty, they will have to exclude the allowed prepayment amount. So, if the allowed amount is 20 percent of the loan, they could only charge 20 percent of that 80 percent in interest as a penalty. Since borrowers usually pay a lot more interest and less principal when loans are new, this can still be a hefty sum.

Selling Properties With A Mortgage Is Very Common

Most mortgages last for 15 to 30 years, so many buyers decide to move before the term of their mortgage ends. This is usually a simple matter, but it can get more complicated in cases where the home is not valued as high as the loan balance, a buyer wants to assume a mortgage, or the loan is new and still has a prepayment penalty.

A friendly note, please consult a Real Estate Agent or the Banks before proceeding further with any sales and if you keen on getting a property please consider Belgravia Green Villas in Singapore.

Here is a video on Properties.

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Can I Sell Mortgage Property to Another Buyer?

Many times this question had appeared to most of us and I hope this article can address this question.

A traditional mortgage might last for up to three decades. Very often, people want to sell their homes long before they have entirely paid off the balance of the home loan. Often prospective home sellers ask this, “Can I sell mortgage property to another buyer?”
Let’s take a moment to understand and answer this important question about home sales.

So, Can I Sell Mortgage Property to Another Buyer?

If you still have an outstanding loan on your mortgage and you want to sell, I suggest that you should first follow these two steps: Find out what you what is the outstanding loan or what you owe:

  • These days, you can probably see the outstanding amount still due on your paper statement or simply logging into the bank website that you use to pay your mortgage to for each month. If you can’t find the answer this way, a simple phone call to your loan company should quickly answer the question.
  • Calculate a reasonable sales price on the home: To figure out how much your house might sell for, you might look at similar listings in your surrounding or neighborhood. Or you can also contact a local real estate broker to ask for comparable recent sales in your vicinity to be precise.

If what you owe is considerably lesser than typical selling prices for homes like yours, you’re probably in good shape. When you close on the home sale price, the closing company will use the sales proceeds to pay off the loan and any other fees or prorated taxes owed. After that, they will cut you a check for the balance. It’s very common for people to sell their homes before they have completely paid off the mortgage, and real estate agents and closing companies know how to handle these transactions very well.


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Can I Sell Mortgage Property If I Owe More Than I Can Sell For? 

In some cases, you may have an urgent reason to sell your home, but you still owe a lot more on the mortgage than you are likely to get from a typical buyer. This can happen during downturns in the real estate market. You probably don’t want to cut a check just to sell your house. If you have a very urgent need to sell your home, you might have the option to work with your finance company to work out a kind of transaction that’s called short selling.
With short selling, the lender will agree to accept less than the loan balance to release you from your mortgage. Or a real estate agent may also help you by negotiating this kind of home sales with your lender. Short selling can help you get out of your mortgage quickly, and it will also look better on your credit than an outright foreclosure. Lenders may agree to short sales because this kind of transaction can save them time and legal fees as well.

Can I Sell Mortgage Property If I Have Prepayment Penalties in My Mortgage Contract?

Another problem that you may face is prepayment penalties for paying your mortgage off early. These penalties are generally only in the contract for the first few years of a mortgage, but they may be as high as eighty percent of the interest you would typically pay in the next six months.
Not all mortgages have prepayment penalties, and in many cases, they only apply to refinance issues and not to outright sales. If you do have these penalties in your lease, you may decide to wait to sell your home. However, if you need to sell your home urgently, you may just sacrifice these penalties from your final check.

Can You Sell Your Mortgaged Property and Let The Buyer Take Over The Loan?

Some mortgage companies will allow another buyer to resume the mortgage. The loan company will probably require the new buyer to meet certain criteria or qualifications, such as having good credit records and so on. Some other loan companies will flat out refuse to let any new buyer assume this mortgage and will ask them to start their own new loan application.
Unless allowing assumptions is already in the mortgage contract, lenders will probably balk if current interest rates are higher than the original interest rate on your current loan. If you can let a buyer assume your loan, at a lower interest rate, it may make your property attractive, even if you must sell for a higher price than the market generally asks for in your area for your type of house.

How to Get Help Selling A Mortgaged Property?

You can do some research on your own, or you can find out how much you need and get an idea of how much you could ask for your house. On the other hand, you will probably have more success by calling upon an experienced real estate agent to access and get you a good price. These professionals can help you understand your current mortgage and alternatives that you may have. The assistance of a real estate professional may be particularly important if you plan to sell when you owe more on your balance than you think you can sell your house for. Well, I hope I was able to answer some of your concerns here. Should you require more information please drop us a line and we will be more than pleased to help you out.

Here is a video on this subject for your viewing pleasure.

Have a great day.…

Sale Of Mortgage Housing Without Losses

How to sell an apartment without having to buy it: a word to the experts. There are many reasons for parting with the newly acquired real estate. And the mortgage burden is not an obstacle to selling square meters.

 The Usual Thing

“Flats from bail are usually sold for two reasons: either because of the arrears of a mortgage loan, or if necessary to change the living conditions (moving to another city, the birth of children, divorce and other life circumstances),” says Julia Tugolukova, director of the company Advice – Petrogradskoe Agency. – In other cases with real estate, especially if this is the only housing, even in case of default sellers part in the last turn “.

To sell real estate in a mortgage is not so difficult. Experts of the St. Petersburg real estate market unanimously affirm that such some Petersburgers are being solved to make such deals, that the algorithm has already been worked out to the last detail.

“Today, this transaction is, in fact, a typical one,” comments Sergey Barachenya, the leading manager of the Russian Real Estate Fund. – To sell real estate in a mortgage, you need either refinance the corresponding object in the bank where the loan is approved, or approve the borrower in the bank where the collateral is located. Anyway, this transaction is possible under one of three conditions. First, there is cash. Then the acquirer extinguishes the seller’s debt to the bank. The second variant of the development of events is when the object is in one bank, and the buyer is approved in another. In this case, two scenarios are possible. The first is refinancing a bank loan A with a loan from Bank B. In this case, the facility itself becomes a pledge of bank B, and a deal is made there. The second – a loan from Bank B is transferred to Bank A. A loan is being issued to repay the previous loan. “…

 Who Does Not Take Risks?

If you sell real estate in a mortgage is not too complicated, then the purchase of such an object has its advantages, as well as a set of significant risks. Of the pluses – the apartment is legally clean: the documents are in order (they were inspected in the bank’s services), there are no claimants for ownership besides sellers. The leading minus – the apartment is still in the mortgage, which generates risks for the buyer. That is why lien apartments, as a rule, are sold at a reduced price.

“The inability to carry out the alienation of a mortgage apartment without paying off debts, creates certain difficulties in carrying out the transaction,” says Julia Tugolukova. – But the buyer pays in this case, paying off the seller’s debt. At the time of registration, the buyer of the apartment is not yet the owner, but has already given money, transferred them to the repayment of the seller’s loan obligations. In case of unforeseen circumstances, the bank will not be able to return the money to the buyer. Either he will have to buy an apartment with encumbrances and, having settled with the seller, re-apply for registration to remove the encumbrance. “

 Cheaper To Redeem

To sell an apartment in a mortgage can be more profitable if you remove the encumbrance from it before you put it up for sale. If there is even the slightest opportunity to borrow the necessary amount or to issue a consumer loan, it is worthwhile to do so, at least, to sell the property at its full cost. Experts argue that today the discount on an apartment with encumbrance may be around 15%.

Having previously bought it from the bank and sold for the full value, the seller can not only significantly simplify the procedure for concluding a deal, but also save money that will undoubtedly not be superfluous when buying the new real estate.