In the case of a sale of real estate secured by a mortgage,
The borrower seller, if he wishes to purchase another property, may request the maintenance of the financing and a transfer of mortgage. What does this consist of ? What is its relationship with the repurchase of credit?
What is the mortgage transfer?
In France, almost all buyers use the mortgage loan to finance their acquisition. In this case, if the buyer wants to sell his property, he must get enough money to pay off his housing loan from his bank. However, if the seller wants to sell his property to acquire another, he can make a mortgage transfer. This consists of changing the property that serves as collateral, while maintaining its initial loan. In other words, the security that is registered on property A is transferred to property B, but the mortgage is retained. This alternative is more economical for the borrower seller since it avoids the costs of release and the costs of setting up a new mortgage guarantee. However, even if its financial cost is lower than the cost of release, this transfer is not free because it is carried out by a ministerial officer, it is a notarial act. In addition, the borrower must obtain the agreement of his bank and in general, he is required to repay his outstanding property in the same bank.
Can a mortgage transfer be made as part of a credit surrender?
Subscription to mortgage-backed home loans does not prevent the sale of real estate even if the original loan is not closed. For this, two solutions are available to the borrower. Either he opts for an early repayment of the outstanding capital due to the money from the sale. In this case, he can not apply for a mortgage transfer. However, the guarantee is lifted if the sale price makes it possible to completely pay off the outstanding capital, this release attests that the borrower has fully repaid his mortgage. Either he asks for the transfer of the mortgage. This is often the case, if he sells to buy by renegotiating his initial loan, but without contracting a new one. In other words, the transfer of mortgage can be considered in the context of a renegotiation of mortgage under certain conditions, the credit must be kept in the same bank. As a result, since the repurchase of a mortgage consists in prepaying its initial loan in order to buy another one with a lighter monthly payment, this implies changing the bank, thus lifting the initial guarantee on the property and registering it. a new one. In this configuration, the mortgage transfer is not possible. In addition, a borrower who has made a repurchase of credit and owns several properties, can make a transfer of mortgage of a property on another under certain conditions.