Did you inherit a house and it’s mortgaged?

In the event of accepting the inheritance, the beneficiary will assume the payment of the mortgage with the previously established conditions. In this regard, the only change that the bank can make is the change of the owner of the mortgage. A procedure that must be free and that will be done with the death certificate and the will.

Inherit living place mortgaged for inventory benefit

Here too the inheritance, with the living place mortgaged and any other assets, Rights or debts, but separating the heritage own of beneficiary and the inherited.

By accepting the inheritance for the benefit of inventory, debts will be met with the heritage inherited. In this way, the beneficiary you will not see your own compromised heritage.

It is a procedure that must be done before a judge or a notary and with whom it is possible to pay the debts of the inheritance, in this case the loan mortgage, with the heritage from inheritance as far as the value of the inherited assets reaches.

Reject the inheritance

The law does not oblige successors to accept a inheritance and lets reject it. If the heir decides to reject the inheritance you will not have to face the payment of the mortgage. But it is important to know that you will not receive the living place nor the rest of the property that would have corresponded to him.

In these situations, it may happen that the creditors (in this case the Bank), legally oblige the acceptance of that inheritance if they consider that the resignation has been made in fraud of their Rights.

Whether you decide to reject or accept the inheritance, you have to analyze the amount of debts and assets to be received.

Claim the clauses abusive mortgage

Yes, it is possible that the mortgage inherited contain clauses abusive, such as a floor clause or that is a loan referenced to a foreign currency, which is known as mortgage multi-currency, among others.

The new owner of the mortgage You can claim to be canceled from the loan with mortgage guarantee said clauses abusive.

What is a transfer mortgage

A transfer from mortgage credit Banking is basically a debtor substitution. In this transaction, the debtor assigns the Rights and the obligations of the mortgage credit to the person interested in buying the property. The new debtor assumes the responsibility of continuing to pay the credit original and it remains in your name.

This is an option for those who need to sell its home due to any circumstance such as a change of residence, marriage, family expansion or if they are going through a divorce and require liquidate its property.

Disadvantages

Many people are wary of seeing mortgaged houses for sale due to the amount of formalities extra to be done. In addition, as a seller you must make sure that the debt is transmitted legally and that the institution that granted the credit recognize the new owner. If not, the owner of the credit You will still be responsible for payments even if you have already vacated the home.

Considerations when conducting a transfer mortgage banking

Authorization by the same institution. The buyer must meet the requirements established for the request for mortgage credit, as one more applicant. If the profile is not covered, the transfer.

Notarial supervision. To avoid fraud, the process of mortgage subrogation must be watched by a public notary in the presence of the representative of the institution from which the mortgage. In this step the Rights and the property -with him mortgage credit-, will remain in the name of the buyer.

Sale price. A transfer real estate does not detract from the property, the sale price should be set according to the real value of the living place. Therefore, the buyer will have to liquidate in cash the difference between the final sale price and the remaining amount of the mortgage credit.

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