Selling your home is an important step in life, but what if you still have an outstanding mortgage? This situation is quite common, and in fact, many real estate transactions involve properties with ongoing mortgages. In this article, from Bel Air Properties, the best real estate agency on the Costa del Sol, we will explain how you can sell your house in this situation and provide you with valuable information so that you can do it successfully.

Option 1: Pay off the mortgage with the money from the sale

When the sale price of your home exceeds the outstanding debt on your mortgage, you can use the proceeds from the sale to pay off the debt and cover expenses related to the cancellation. The process involves requesting a certificate of outstanding debt from your bank and presenting it to the notary during the sale. At signing, the buyer will make two payments: one to you and one to the bank, allowing you to complete the sale and pay off your mortgage.

Option 2: Sell your home for less than the mortgage

Sometimes, you may need to sell your home for less than the outstanding balance on your mortgage. In this case, the decision is not solely up to you, as you will have to negotiate with your bank. The property serves as collateral for the loan you were given for its purchase. Here, you have three alternatives:

1. Pay off the loan with your savings to cover the difference.
2. Negotiate with the bank for a personal loan to pay off the remaining debt.
3. Explore the possibility of an agreement with the bank for a haircut. This option is more limited and depends on various particularities.

Who pays the mortgage cancellation fees?

It is important to note that the costs of cancelling the mortgage always fall on the mortgage holder. This is a key aspect to consider when setting the sale price, as it will impact your finances. These expenses include both the bank costs agreed upon during the signing of the loan and those related to the cancellation in the Land Registry.

Bel Air Properties, the best real estate agency on the Costa del Sol, at your service

Selling your home with an outstanding mortgage is a process that can be successfully navigated if you understand the options available and make informed decisions. Our team of experts, backed by Bel Air Properties, will guide you through the entire process, making sure your sale is a success.

Don't let an outstanding mortgage stop you from taking the step into your next chapter. Contact us today for personalized guidance and to begin the process of selling your home with confidence.

Conclusion

Selling your home while you have an outstanding mortgage may seem like a challenge, but with the right knowledge and the right support, it's an achievable goal. So, go for it! Do not hesitate to contact us to start this exciting journey towards the successful sale of your home.

Recuerda, en cada paso del camino, Bel Air Properties, la mejor inmobiliaria de La Costa del Sol, estará a tu lado para garantizar tu éxito en esta transacción importante.