Index
Selling a mortgaged property it is possible, but it requires special attention.
In this guide we see in which cases it is possible to sell a house with a mortgage that is still active, what procedures to follow and what options exist for those who intend to conclude the sale despite the constraint.
What is a mortgage and when does it apply to a property
A mortgage is a form of real guarantee which is registered on a property in favor of a creditor.
It serves to protect it in the event that the debtor does not fulfill the payment obligation. In practice, even if the house remains in the owner's possession, the creditor has a right of pre-emption on it: it can retaliate against the property if the debt is not paid off.
The mortgage is mainly applied in three situations:
- When yes Take out a mortgage to buy a house;
- When a creditor obtains a judicial decree for the recovery of a credit;
- When does the State intervene for the non-payment of taxes or contributions (legal mortgage).
It is important to know that the mortgage does not prevent the sale of the property, but Those who buy also inherit the burden.
For this reason, it is essential to clarify the debt situation before proceeding with the transfer.
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Difference between voluntary, judicial and legal mortgages
Not all hypotheses have the same origin or nature.
In fact, there are three main types, which are distinguished based on the way in which they are registered on the property:
Voluntary mortgage
It is the most common form and is based on a freely signed contract between the debtor and the creditor.
Typically, this is themortgage taken out to secure a mortgage: the owner of the property asks for a loan (for purchase, renovation or other purposes) and the bank registers the mortgage on the property as a guarantee of the credit granted.
This mortgage is registered in public records and remains active until the debt is completely repaid, plus any interest or expenses.
Even if the mortgage is regularly paid off, the mortgage continues to exist formally until it is canceled.
Judicial mortgage
This form of mortgage is ordered by the judge when a creditor obtains a Conviction against the debtor, for example for non-payment of a sum of money.
Unlike the voluntary one, here there is no agreement between the parties, but a imposed measure.
It is a tool used in cases where the Debtor do not cooperate spontaneously and is used to guarantee the creditor a pre-emptive right on the property.
If the debt is not paid off, the creditor may demand the forced sale of the asset at auction.
Legal mortgage
The legal mortgage is automatically activated for effect of a rule of law, without the need for a contract or a judgment. It applies in certain cases, such as when no taxes, taxes or penalties are paid.
This is the case, for example, of mortgages registered by the Revenue Agency - Collection (formerly Equitalia) to protect tax credits.
In these situations, the property can be tied without the owner being immediately aware of it, which is why it is essential to make a Mortgage certificate before selling.
How to check if the house is mortgaged and by whom
The verification is carried out through a Mortgage insurance, an official document issued by the Conservatory of Real Estate Registries (now managed by the Revenue Agency - Territory).
The visa can be requested personally, through the Agency's portal, or by relying on a notary or a qualified technician.
The mortgage certificate contains detailed information on:
- the presence or absence of mortgages on the property;
- the type of mortgage (voluntary, judicial, legal);
- the name of the creditor (for example, a bank, a private individual or a public entity);
- the amount of the secured credit;
- the date of registration and the details of the act.
In addition to the visa, it is possible to deepen the debt situation by requesting a mortgage registration note Or theDeed of mortgage, if it is a voluntary mortgage. In the presence of active mortgages, it is also important to verify if enforcement proceedings or foreclosure acts are in progress, which may affect the market value and the timing of the sale.
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How to sell a property with an active mortgage
The first step is always to inform the buyer of the presence of the constraint and to share with him the possible solutions to remove it. The goal is to find an agreement that guarantees security for both parties and allows them to proceed with the project without obstacles.
Dismissal of the mortgage at the time of the project
It is the most common solution and also the easier to implement.
The seller agrees with the buyer that a part of the agreed price is allocated to paying off the debt.
The notary, at the time the act is signed, will withhold the amount necessary to pay off the debt and proceed with the cancellation of the mortgage.
In this way, the buyer buy a property free of restrictions, without having to go through further steps after the project.
Debt collection by the buyer
In some cases, Selling a house with a mortgage in progress it is possible: the buyer can decide to take charge of the remaining debt, taking over the existing mortgage.
This is a call mode Mortgage down payment, which must be expressly approved by the creditor bank.
The transaction may be convenient if the mortgage has favorable conditions, but it is important to evaluate it carefully, since it is not automatic and requires availability of the credit institution.
Sale with balance and excerpt
When the Remaining debt is greater than the value of the property, you can try the road of balance and excerpt.
This option includes a Negotiation with the creditor (often a bank or the Revenue Agency - Collection) to agree on the payment of an amount lower than the total debt.
If the creditor accepts, the mortgage is paid off and the sale can proceed.
It is a complex solution, which requires theassistance from an experienced professional, but it can be decisive in situations of high indebtedness.
Frequently Asked Questions About Selling a Mortgaged Home
House mortgaged by the Revenue Agency: can it be sold?
Yes, even a property encumbered by a mortgage registered by the Revenue Agency - Collection (former Equitalia) can be sold.
However, to proceed with the Deed, it is It is necessary to pay off the debt or reach a agreement with the creditor institution.
In most cases, the amount due is paid at the same time as the act of sale, with Notary support, which deals with transferring funds directly to the Agency to free the property from the constraint.
How do you cancel a mortgage to proceed with the sale?
The cancellation of the mortgage takes place only after the secured debt has been fully paid off.
The creditor (bank, public or private entity) issues a statement of payment. This document, called Extinction receipt, is handed over to the notary, who requests cancellation at the Conservatory.
In the case of a regularly canceled mortgage, the procedure is automatic and does not involve costs for the debtor. If, on the other hand, the mortgage has been registered by a public body, there may be additional technical times and formalities to be respected.
How much does it cost to take out the mortgage on the house?
The cost varies depending on the type of mortgage.
In the case of voluntary mortgage linked to a mortgage, cancellation is free of charge if the mortgage has been paid off in the manner and on schedule.
If the mortgage is derived from tax or judicial debts, there may be notary costs, registration taxes or land registry fees.
In the presence of a Balance and excerpt, the creditor may request additional expenses related to the negotiation and the formalization of the agreement.
These amounts should be considered among the main Costs for those who sell homes with a mortgage that is still active.
How much is a mortgaged home worth?
The value of the property does not change just because it is mortgaged: it remains linked to its characteristics (size, area, state, local market).
The presence of a mortgage, however, may affect negotiations: the buyer could Ask for a discount or give up altogether if you perceive the situation as too complex.
In the case of Balance and excerpt, it is possible that the The sales price is lower at market value to close the debt position quickly.
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Documents and parties involved in the sale of a mortgaged property
In addition to vendor And to theshopper, the sale of a mortgaged home always involves the notary, which verifies the regularity of the documentation and takes care of the cancellation of the bond.
If the property is encumbered by a mortgage, the Bank. In the case of complex negotiations, such as the balance and excerpt, the intervention of a expert advisor Or say a lawyer.
The documents to be prepared include:
- updated mortgage certificate;
- mortgage agreement;
- payment receipt;
- any written agreements with the creditor.
When does a mortgage on a property lapse?
A mortgage lapses in two cases:
- by law, after 20 years from its enrollment if it is not renewed;
- At the time of paying off the debt, with subsequent cancellation at the Conservatory.
It is important to know that even if the debt has been paid, the mortgage remains formally active until it is canceled.
For this reason, it is essential to conclude the process with the support of a notary.
Is it worth selling a mortgaged home through an agency or private individual?
There is no single answer, it all depends on the complexity of the situation.
In the presence of large debts or negotiations with public bodies, relying on an agency can be a useful choice: who decides to Selling a house with an agency can count on professional support in managing documents, relationships with creditors and the entire sales process.
If, on the other hand, the situation is clear and well managed, even the private sale can be successful, as long as the seller has Familiarity with the procedures and rely on professionals for technical and legal aspects.