How to deal with selling a house during mortgage
In the context of frequent fluctuations in the real estate market, many home buyers are faced with the situation of having to sell their properties without paying off their mortgages. This article will analyze in detail the process, precautions and common problems of selling a mortgage house to help you complete the transaction efficiently.
1. The core process of selling a mortgage house
| steps | Operation content | Things to note |
|---|---|---|
| 1. Assess property value | Entrust a professional agency or refer to surrounding transaction prices | Need to cover remaining loan and transaction costs |
| 2. Contact your bank | Apply for early repayment or remortgage | Liquidated damages are required (usually 1-3%) |
| 3. Sign the sales contract | Clarify payment method and transfer time | It is recommended to trade through a capital supervision account |
| 4. Release and transfer of ownership | The buyer's down payment is used to repay the loan and then the mortgage is released | The whole process requires the cooperation of the bank |
2. Comparison of three common processing methods
| way | Applicable scenarios | Advantages and Disadvantages |
|---|---|---|
| Self-raised funds for loan repayment | The seller has sufficient funds | Fast but under great financial pressure |
| Buyer's advance deposit release | Buyer agrees to assist | A tripartite agreement is required to protect rights and interests |
| Remortgage (rare) | Banks support this business | The procedures are complicated and there are many restrictions |
3. Risk prevention that must be paid attention to
1.Fund security: It is recommended to conduct transactions through a bank or third-party custodial account to avoid the buyer’s down payment being misappropriated.
2.Contract terms: It is necessary to clearly mark "the house is in mortgage status", and agree on the release time node and liability for breach of contract.
3.Tax calculation: The sale of a mortgaged house may involve value-added tax (exempted after two years), personal income tax (only exempted after five years), etc., which need to be calculated in advance.
4. The latest policy impact in 2023
| policy | Scope of influence | Specific content |
|---|---|---|
| Pilot transfer of ownership with deposit | 15 cities across the country | The loan can be transferred directly without repayment |
| VAT reduction | Nationwide | VAT exemption if held for 2 years |
5. Expert advice
1. Start planning 6 months in advance and allow enough time to handle bank procedures.
2. Choose a formal intermediary that is familiar with the process and can provide fund supervision services.
3. Keep all repayment vouchers to avoid credit problems that may affect subsequent home purchase loans.
4. Pay attention to whether the "transfer with deposit" service is available in your location, which can greatly simplify the process.
Through systematic preparation and risk prevention, the transaction can be completed smoothly even if the house is still under mortgage. It is recommended that sellers choose the most suitable solution based on their own circumstances and consult a professional lawyer or real estate agent if necessary.
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