How to sell an apartment with a Sberbank mortgage
Content
The acquisition of real estate using mortgage funds from Sberbank allows us to solve the housing problem, however, it imposes significant restrictions on the disposal of property due to the occurrence of collateral. How to sell an apartment with a Sberbank mortgage, and is it possible to complete the transaction without the participation of a credit institution? The answer to this question can be found in the material presented.
Is it possible to sell an apartment with a mortgage in Sberbank
Among the many credit institutions in our country, the largest share of mortgage loans falls on Sberbank. This is due to the wide network of company divisions, which makes it possible to cover almost all localities with services.
An apartment taken on a mortgage from Sberbank will only formally belong to the buyer, due to the following circumstances:
- the purchase and sale agreement for the apartment is drawn up simultaneously with the collateral obligation, which is a guarantee of timely payment;
- during the period of validity of the loan agreement, the disposal of the mortgaged apartment is carried out only with the consent of the bank, and in some cases, the terms of the loan may establish a complete ban on alienation;
- Removal of the encumbrance on the apartment will be available after full fulfillment of obligations to the credit institution.
The bank gains control not only over possible cases of sale of the collateral, but also over its actual use. Violation of the terms of the loan agreement may lead to its early termination, which poses a potential risk of losing your home.
Is it possible to legally complete a transaction for the purchase and sale of an apartment that is encumbered with bank collateral? This option exists, and it can be implemented in two ways:
- sale of a mortgaged apartment with the permission of the bank;
- completing a transaction without the participation of a credit institution.
The ability to sell a mortgaged apartment with the prior permission of Sberbank will be determined only by the mortgagee’s own decision and directly depends on the terms of the mortgage agreement.
If the content of the agreement included a clause on a complete ban on transactions, the theoretical opportunity to sell the premises will arise only with the consent of the credit institution to change the terms of the agreement.
If the terms of the mortgage loan do not establish restrictions on the possible alienation of real estate, the sale of the mortgaged apartment will be possible taking into account the following circumstances:
- the seller of the mortgaged apartment must submit to the credit institution a draft agreement indicating all the essential conditions for the apartment purchase and sale transaction;
- the bank checks the submitted documentation and determines the fate of further servicing of the loan;
- The seller's offer for a mortgage apartment may be satisfied or left without approval, and the borrower does not have the right to demand approval of such a transaction.
Under what conditions will the bank allow the sale of an apartment? The submitted documents must provide a way to protect the rights of the credit institution: repaying the debt at the expense of the transaction amount or transferring credit obligations to a new person. Obviously, there is only a theoretical probability of the bank agreeing to replace the borrower, since it implies a thorough check of his credit history, income level, family composition, etc.
If the bank does not agree with the sale of the mortgaged apartment, the home owner will have to look for ways to circumvent the restriction on the disposal of the property and completely exclude the bank from the list of participants in the transaction.
Three ways to sell an apartment without bank permission
Methods for selling property without bank permission must include the option of repaying the loan through the terms of the transaction. This implies setting the cost of the apartment at a price that will allow:
- repay the principal debt;
- pay current interest on the use of mortgage funds;
- pay the possible cost of an additional commission for early repayment of the loan (if such a condition is contained in the text of the agreement).
In such a situation, the buyer of a mortgaged apartment actually has an obligation to repay the loan obligation early, and these actions must be performed before signing the purchase and sale agreement.
To this end, the owner of a property encumbered with a mortgage must perform the following actions:
- find a potential buyer of a mortgaged apartment who will be willing to pay the full or most of the cost of the property before concluding an agreement;
- enter into a preliminary agreement or other similar agreement allowing for the transfer of money before the main transaction is completed;
- repay the debt to the bank and remove the collateral from the property;
- draw up an agreement, after which the purchaser of the mortgaged apartment will acquire the entire range of rights.
In this case, the apartment pledged to the bank will be released from the encumbrance immediately after the amount of debt and interest is repaid. The consent of the credit institution or its participation in the transaction will not be required under any circumstances.
A possible option for using this method is a situation where an existing mortgage loan is used to obtain a new mortgage loan. If the apartment is purchased with a mortgage, this option will require agreeing on the terms with the buyer’s credit institution.
Required package of documents
The set of documents for the alienation of mortgaged premises will vary depending on the course of action chosen by the seller. If a transaction is made with the participation of a bank, then you will need to formalize the sale of mortgage debt with the interested party.
To do this, the parties and the credit institution will need the following documents:
- a draft purchase and sale agreement, the subject of which will be a mortgaged residential property, and the cost of the transaction will not be lower than the balance under the loan agreement;
- a complete set of documents to verify the buyer’s solvency (usually coincides with the bank’s usual requirements when considering a loan application);
- agreement to transfer mortgage debt to a new person.
Since the decision on the possibility of selling an apartment depends only on the will of the bank, the parties will follow its instructions when preparing all the necessary documents.
When purchasing a mortgaged apartment from Sberbank without the permission and participation of a credit institution, the parties will need the following documents:
- the original mortgage agreement from which the loan balance can be determined;
- an extract from the Unified State Register of Real Estate, from which the parties will receive information about the seller’s rights to the premises, as well as about the presence of collateral;
- a preliminary purchase and sale agreement, in which the parties will record their intention to complete the transaction and provide for the possibility of paying the amount under the agreement to repay the loan;
- receipt for receipt of funds;
- a purchase and sale agreement that will be signed after the mortgage debt is paid off and the lien is removed.
If the specified documents are available and the parties agree to formalize the transfer of funds before the main purchase and sale transaction is completed, this method will allow you to avoid contacting the bank for permission to alienate the pledged property.
Possible risks when buying a mortgaged apartment
The main risk of purchasing a mortgaged apartment is the possible loss by the buyer of funds, which he will be forced to transfer before the official transfer of ownership.
The preliminary purchase and sale agreement contains only an obligation to complete the transaction, but is not considered by law as a guarantee of its completion.
If funds are transferred by receipt for a future purchase of housing, the buyer has the opportunity to recover it in case of violation of the obligation to alienate the premises. However, the real opportunity to get your money back may become problematic due to the seller’s dishonesty.
Based on this, the most preferable option for the buyer to purchase a mortgaged premises is for the seller to obtain permission from the bank and agree on all essential terms of the contract.
Another solution to the problem could be a partial transfer of funds, which will be enough to repay the loan, while the rest of the money will be transferred after the main transaction is completed.
Seller's risks
For the seller, the risk of carrying out such transactions is a significant understatement of the market value of the object. For a potential buyer, the presence of an existing encumbrance on the property will be an additional factor allowing the price of the property to be reduced.
It is extremely difficult to avoid such risks, since the secondary housing market allows you to purchase an object with similar properties and without the presence of an established collateral. It is better to search for a potential buyer with the help of an experienced lawyer or realtor, who can explain the security of the transaction even if there is an encumbrance on the residential property.
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