Selling a mortgaged flat is not too complicated, you only have to pay back your current loan.
The easiest way is when the buyer wants to buy an apartment for cash. Then he simply transfers the amount corresponding to the level of debt to the creditor’s bank account, and the remainder of the receivable is received by the seller.
It should be remembered that in some banks there is a commission for early repayment of the loan, which may amount to e.g. one percent of the repaid amount.
Bank approval required
Some complications can arise if the buyer wants to take out a loan. A new bank can be registered in the mortgage only after deleting the old one, which in turn will agree to delete it after receiving the money due.
It is, therefore, necessary to describe in detail in the notarial deed how the transaction will be carried out so that the interests of both banks are secured.
If the amount of mortgage debt is lower than the transaction value, then the rest of the money goes to the seller’s account.
However, it is worth knowing that a mortgaged apartment cannot be sold without the opinion and consent of the bank that is included in the mortgage, and – if the buyer intends to take out a loan – the other bank. So first you need to settle these formalities, and sometimes it can take up to two weeks.
Own contribution problem
Sometimes complications can arise if … the buyer has his own contribution. Imagine the following situation: Fine Bank has 100,000 USD cash and buys an apartment from Nowak for 400 thousand USD – missing 300,000 USD will want to finance with a mortgage.
But Nowak’s apartment is mortgaged with a debt balance of 350,000. USD. Fine Bank demands a certificate on the current debt balance, which is normal, and it may take, for example, two weeks to issue it.
The condition for running the loan is that the amount of debt should not be higher than the amount of the loan, so first you must (from the cash held by Fine Bank) pay off part of the loan. In most banks, notary confirmation of the transfer of the missing 50,000 would suffice, but there are institutions on the market that will demand another certificate of the debt balance and we have a two-week delay.
The case may also be delayed due to the dates of booking operations. There are banks that book their full loan repayment only on a specific day of the month (usually on the installment payment date). If we are late with this operation for a few days, we will be almost a month late.
Such situations, however, occur quite rarely, most often it is possible to arrange everything efficiently. Some of those who bought a flat with a foreign currency loan have a problem.
First of all, exchange rates change every day. The debt balance certificate usually includes the loan amount in currency and its equivalent in USD, converted at current exchange rates as at the date of issue of the document. If after a few weeks the loan is disbursed, it may turn out that the amount is not enough to repay the existing loan.
Sometimes the course bothers
Due to the weakening of the zloty, it may be that, given the current exchange rates, we owe the bank much more than when we took out the loan. For example, if someone borrowed 400,000 two years ago USD in Swiss francs, today it owes the bank over 600 thousand. USD. Such a person has a debt level of 50%. higher than the value of the property, which significantly hinders its sale. Practically makes it impossible.
To get rid of such an apartment you would have to add 200,000 USD. Unfortunately, such people are indeed imprisoned, but this is not due to the mortgage itself, but the unfavorable turn of events in the currency market and falling real estate prices.