“Any transaction with mortgaged real estate is not possible without the approval of the bank that issued the mortgage loan. Therefore, the first thing to do is to contact the bank and find out how the encumbrance is removed and how to pay off the mortgage debt in advance. Next, you need to determine how you plan to sell the apartment: whether the mortgage liability will be transferred to the buyer or the bank will allow the sale transaction, the owner of the apartment will receive the funds from the buyer and use them to pay off the mortgage,” lawyer Marina Golenkova told Rossiyskaya Gazeta.
Not all real estate buyers are willing to get involved in the process of buying a mortgaged property that is pledged to the bank. Therefore, it is necessary to inform real estate agents and potential buyers that the apartment is mortgaged.
If a buyer is found, it is necessary to obtain approval from the banking organization that issued the mortgage loan to carry out a real estate purchase and sale transaction. This approval is issued by the bank in writing and is taken into account during the transaction.
“The buyer and seller of the apartment then enter into a contract of sale, as a result of which the buyer transfers ownership rights if the seller assigns the mortgage loan, or transfers the responsibility to repay the mortgage loan in the future, if the apartment is sold together with debt obligations,” the lawyer said.
