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How to buy a collateral apartment?


It is not always the purchase of an apartment or house that is pledged is a dangerous and problematic transaction. Sometimes this can be very beneficial, provided, of course, that you know how to buy a mortgaged property. As a rule, it is sold only in cases where the seller urgently needed money, which means that the price of such real estate is greatly underestimated. On the other hand, a specific problem is that third parties can always claim their mortgaged property.

Ways to acquire mortgaged property

What is a guarantee? If the property is mortgaged, it means that its owner has certain obligations to the pledge holder - a bank or any other lender. It also means that the owner of the property cannot freely dispose of the pledged property. Any transactions with such real estate are possible only with the consent of the pledge holder. If the owner of the mortgaged property fails to fulfill its obligations, in particular - to repay the loan, then the pledge holder can claim his rights to this property and either register it as property or sell it, for example, by auction.

Nevertheless, even with mortgaged real estate, transactions can be made. Two main methods are used for this. Or the mortgagee agrees that the acquirer of such real estate draws up his property rights to it, with the simultaneous transfer to him of the obligations of the current owner of the real estate. In this case, the object continues to remain in the pledge, in fact, only the change of the pledgor takes place. Or first, the current owner of the property repays his obligations to the pledge holder, the property is released from the pledge and transferred to the buyer. In fact, the last case, this is not the purchase of mortgaged property, since by the time of the transaction of sale, the deposit from the object is withdrawn. Let's try to understand each of these methods in more detail.

How to buy a mortgaged property with a change in the mortgagor

In this case, it is possible to sell a mortgaged apartment only with the consent of a similar transaction by a direct creditor-pledge holder. I must say that if the apartment is pledged to a bank, obtaining such consent can be quite difficult. The fact is that banks are rather reluctant to make any transactions with mortgaged real estate, as this is always associated with risks specific to them. In order to obtain the consent of the bank, it will be necessary to convince him that the acquirer of the pledged real estate will be able to repay the debt and related interest without any problems. On the other hand, if the bank nevertheless agrees to carry out this transaction, the buyer, who is in the pledge of real estate, practically does not risk anything, since the mortgage bank itself will thoroughly verify the legal purity of the whole process. As for settlements with the direct seller, there are also two options, depending on the agreement of the parties. The buyer can assume all obligations to repay the debt to the creditor bank, without paying any additional money to the seller. In this case, it is only about the fact that the seller wants to get rid of his own obligations on the loan, which have become overwhelming for him, for example, due to loss of work or for some other reason.

And the second option - when the buyer not only assumes the obligations of the seller to pay the loan, but also additionally makes some kind of surcharge to the seller specified in the contract of sale of the mortgaged property.

The most important thing in carrying out such a transaction is to find out if the seller of real estate also has debts to other banks. Otherwise, in the future, they may claim their rights to the acquired property. However, as already mentioned, in such cases, the mortgage bank itself checks everything quite carefully, including the credit history of the seller of real estate.

How to buy a mortgaged property, after having exempted it from the pledge

It would seem that everything is very simple here - the seller repays his debt to the bank, the bank removes the deposit from real estate, and after that it is sold in the usual way. But the thing is that to pay off his debt, the seller most often uses the money that the buyer gives him, which, of course, is a certain risk for the latter. For example, suddenly the seller, after removing the mortgage from the real estate, refuses to draw up a contract of sale? Nevertheless, there are still some ways to make this situation less risky.

In particular, the seller can transfer money to the seller so that he pays the bank, issuing them as a deposit for real estate. According to the law, the deposit, in case of refusal of the seller to complete the transaction, is returned to the buyer in double size. This is a certain guarantee of compliance with the agreements.

It is also advisable to first determine the actual amount of the seller’s debt to the bank. You should not rely solely on the certificate that he can provide. It is best if the buyer and the seller go to the bank, where you can talk with the loan manager who works with the property owner. It is not necessary to go to the bank independently, namely, together with the mortgagor, since such information is a trade secret and is not disclosed to third parties. Find out not only the size of the loan itself and interest, but also whether the seller has been charged interest, penalties or other penalties, as well as the size of the amount that was spent on servicing the loan.

Additionally, order on your own a fresh extract from the Unified State Register, from which it will be clear whether the mortgaged property has been seized and whether there are any rights of third parties.

It is preferable to deposit the amount that you transfer as a deposit directly to the account indicated by the bank to pay off the debt. This will guarantee that it will get exactly as intended.

After the bank decides to withdraw the mortgage from real estate, it will need to be registered. Usually this is done by the former mortgagee, registration takes 5 business days. And only after that it will be possible to conclude a basic contract of sale of immovable property.

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Buying an apartment with encumbrance is different from acquiring free real estate.

What you need to know the buyer of housing, which is pledged to the bank?

Most banks keep originals title documents to the collateral object.

It entails certain difficulties for a potential buyer who, upon signing the preliminary contract, can’t get his hands on real estate documents (even under the guarantee of a deposit) and get to know them thoroughly.

In this case, the risk for the buyer is that the seller can simultaneously take several deposits from different persons. The property remains pledged to the bank until the loan is fully repaid. You can sell and, accordingly, buy housing with an encumbrance only with the consent of the bank.

Collateral real estate can be purchased with the participation of the bank and purchased directly from the borrower.

With the participation of the bank

Most safe option acquisition of collateral real estate - purchase of an apartment with the participation of a creditor. In this case, the bank (with the help of an accredited realtor) accompanies the entire purchase and sale procedure. The buyer can choose one of the options for processing the transaction.

Buy an apartment, paying the remainder of the debt for the seller

After closing the loan, the bank issues a notary to the notary about the absence of debt on the loan, real estate is removed from the mortgage register, the burden is removed from it.

Next, a sales contract is drawn up, a full settlement is made, the ownership of the living space passes to the buyer.

Important! The Bank ensures the security of such a transaction by providing a bank cell as a guarantee of preserving the buyer's funds.

Buy a mortgage property on credit

This means that to purchase this property, the buyer takes a loan from the same bank and becomes a borrower himself. Often, banks even offer special programs for such buyers on preferential terms: reduced interest rates, minimal advance payments and expedited transaction processing.

You can buy property from a bank at an open auction. In this case, there is a real opportunity to purchase an apartment at a price lower than the market price, since this property was forcibly taken from the borrower, and the bank independently sets the starting price. You can find out about trading on the websites of banks, from specialized newspapers and magazines.

There is a risk that the former borrower will challenge the court decision and the legality of the transaction.

Buying directly from the borrower

You can buy collateral real estate directly from the borrower without the participation of the bankbut with the consent of the lender for sale.

In this case, the buyer pays for the apartment full price.

Of this amount, the borrower repays debt to the bank, closes the loan. Further, the burden is removed from the apartment, then its re-registration to the new owner follows.

Attention! You should be very careful when making such a transaction. If the advance payment is made before the apartment is withdrawn from bail, then the buyer may lose their funds. It will be very difficult to prove anything to the court, since the whole procedure was carried out without the participation of the bank.

There is also a second option: buying not the apartment itself, but debt. This means that the buyer purchases housing along with mortgage encumbrance. Such a transaction is called “debt transfer”. Its initiator, that is, the borrower, sells its loan obligations and ownership of housing for a certain compensation.

To avoid cheating, it is worth considering several recommendations.

Carefully study All original documents of the seller. Visit the bank and get the lender’s consent to complete the transaction. In no case don't agree for prepayment.

Better buy an apartment with a burden, and then pay the rest of the debt to the bank.

For making calculations rent two bank cells: for the seller and for the bank.

In the cell for a financial institution, money intended for repayment of debt is put.

Access to the cells, both parties will receive only after registration of property rights in favor of the buyer.

As for the risks, they always exist, even when buying free housing, not burdened by encumbrance. In the case of buying a mortgage, the risks increase slightly.

Earlier it was said that most safe is a transaction involving a bank. However, here too, a “underwater pebble” in the person of the former owner who will try challenge a court decision for various reasons (for example, unfavorable terms of the transaction, etc.). How to provide for such incidents?

There are also certain risks in the sale of real estate. from bidding. The former owner may present various claims to the bank, even to the extent that the conditions of the apartment do not meet the parameters set forth in the contract.

But most often you may encounter the fact that the apartment is registered minor child.

Usually in such cases, the property is not put up for auction.

But it happens that the baby’s parents did not register him in the apartment, however, the child ends up in it registered automatically following the mother.

It is unlikely that the buyer will be able to find out independently about this.

It’s best to hire a specialist who can thoroughly check all information regarding all homeowners.

Is it worth it at all?

In general, the sale of a mortgage apartment can potentially be considered profitable enterprise for all participants in the transaction.

Bank receives his money, possibly with interest, and can use it to conduct further financial transactions. Seller gets rid of burdensome debt obligations and becomes financially independent.

Customer acquires the desired apartment, possibly with a certain discount or on credit on favorable terms, while becoming a bank borrower.

Why ignore a potentially profitable deal?

Only important don't forget about the risks and be sure to provide for them.

Remember that proper planning and careful preparation of the transaction, taking into account all risks, will help avoid unpleasant momentsrelated to the purchase of collateral real estate.

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Standard option for selling collateral

For the sale of collateral borrowers pushed for various reasons. So, for example, having lost a job or going on maternity leave, the borrower may become insolvent, someone needs to move to another city and change their place of residence, well, or a large sum of money is urgently needed.

Whatever the reason, you must first contact the bank that is your lender

Depending on the specific situation, the bank may not always agree on your request. The reaction of the bank is more dependent on the conditions specified in the loan agreement. But in most cases, if the borrower pledges to repay the loan in full in full, the probability of the bank's consent to the sale of collateral is significantly increased.

This happens as follows:

Determining the market value of a collateral apartment, followed by putting up housing for sale and searching for a buyer for it. When a buyer is found, a purchase and sale transaction is executed in such a way that the total cost of the apartment is subsequently divided by the buyer into two parts - the amount of credit debt of the seller-borrower and the remainder of the apartment value.

Each of these parts, of the total cost of housing, is distributed in the respective bank cells, one of which belongs to the bank, and the second to the seller. After the lender receives his part from the transaction, he will transfer to the registration chamber the necessary documents on removing the burden from the apartment and forms for registering the relevant transaction. Both transactions are concluded in parallel with each other.

Sale of a collateral apartment with a change in the borrower

There is another option. If the buyer found does not have the necessary amount of funds to buy a home, then in this case it is possible to sell the collateral with a change in the rights of the borrower. The buyer pays the seller only the difference between the total cost of the apartment and the size of the outstanding bank loan, the remainder of which is subsequently paid by the bank by taking over the rights of the borrower.

Although such cases occur quite often, banks do not always welcome such transactions. This is because the newly minted borrower still needs to be checked for solvency, and the loan rate itself will need to be refinanced, since it could have changed significantly since the mortgage was issued by the previous borrower. This option does not always look attractive to a property buyer.

  1. Firstly, he has to wait long enough for the renewal of ownership documents after the housing has been taken out of bail, and this process can take one to two months.
  2. Secondly, the size of the advance payment is usually many times larger than when buying ordinary, non-mortgage housing.

Sale of a mortgage apartment by a bank

If the situation has reached the point where the borrower cannot find a buyer for the mortgage property and is not able to make timely payments on the loan, then, on the basis of a preliminary court decision, the bank will sell the house at auction. In addition, in order for the bank to be able to judicially seize the property of the borrower, two conditions must be met: The total amount owed must be at least 5% of the cost of housing indicated in the loan agreement when it is drawn up.

The delay in monthly payments must be at least three months. At the same time, depending on the terms of the loan agreement, the borrower may request a delay in payment of arrears up to one year due to family or difficult financial circumstances. In the event that the apartment will still be put up for auction, at least two buyers are required to complete the sale. This is a rather complicated and time-consuming process for the bank and, as a rule, such situations rarely happen.

Sale of collateral real estate after early repayment of a loan

If the borrower has already paid most of the debt on the mortgage, then credit organizations recommend that you study the principle of selling collateral after early repayment of the loan. Thus, if the bank issued a mortgage to the borrower in the amount of one million rubles, and at this point the borrower owed another 200 thousand rubles, then the debtor himself having received this money can pay off the debt ahead of schedule.

After which the lender will immediately remove the burden from the property. And the borrower himself, thus, without unnecessary difficulties, will be able to sell the apartment having received his money back.

There are two possible answers to the question - where to get these missing 200 thousand rubles? The first is to take a consumer loan from another or the same bank. If the borrower has established itself as a compulsory and solvent client with a positive credit history, then a refusal is unlikely to follow, and a mortgage loan can be repaid immediately after the sale of real estate. The second way - this will agree with the home buyer on the deposit in the amount of the remaining amount to repay the loan. In this situation, there is a certain risk for the buyer, but in return the seller can reduce the cost of the apartment.

Big change in housing conditions

Also, in banking practice, there are cases where for a rather long time a mortgage-paying borrower decides to sell collateral real estate due to the need for larger housing. In other words, in order to improve their living conditions. This situation is quite common for lenders and often they satisfy a similar client request by agreeing to sell the mortgage property according to the above schemes. At the same time, the proceeds of the amount from the sale of the apartment are used to pay off current debt, and part of the funds that are left are spent on the down payment for the purchase of more comfortable housing, but under a different loan agreement.

Change in housing conditions down

It also happens that the borrower, not calculating his strengths and resources, takes a mortgage which is extremely difficult for him to pay, and as a result there is a desire to exchange it for a more modest apartment. This option of selling collateral real estate is also possible, but unlike the previous option, it is less welcomed by banks and is carried out with the obligatory consent of the creditor under his strict supervision.

Selling collateral is illegal

Finally, it is worth mentioning the illegal sale of collateral real estate. The nuance is that most credit organizations entering into an agreement with the borrower include items in the agreement following which the property of the mortgage cannot be transferred into ownership by third parties, with the only exception - the universal acceptance of rights upon receipt of an inheritance. If this condition is violated, not only does the mortgage sale transaction become void, but there is also a high probability that the bank will require early repayment of the loan in its entirety regardless of who owns the property at the moment.