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.