What Do I Do When Selling a Property with a Mortgage on it?
Selling a property with a mortgage on it is something that occurs more often than you think. You go through the same sales process, but there’s an extra step. The extra step is getting in touch with the lender and requesting a discharge form. A mortgage discharge involves the form and documentation. Expect the process to take a few weeks. If you want to receive the proceeds as soon as possible, start the discharge process right away.
To sell a property with or without a mortgage, get organised, and prepare the home for sale. Complete outstanding maintenance and become familiar with the market in your area. Decide how you want to sell the home and set the home’s asking price.
Prepare the vendor’s statement and contract of sale. The vendor’s statement is also known as Section 32. It’s a legal document that states whether or not the property has a mortgage. Advertise the sale and start fielding offers.
As soon as you accept an offer, fill out and submit the mortgage discharge paperwork. The final step, in this case, is the settlement. Your lender completes a series of calculations before the settlement is complete. They subtract fees, the deposit, and the outstanding mortgage amount from the sale amount.
When the settlement is complete, the sale can go through. When both the settlement and sale are complete, you are asked to move out of the home quickly.
Selling a Property with Mortgage Conclusion
Selling a property with a mortgage on it isn’t very different than selling a home that’s paid off. The difference is that you’ll be asked to fill out a mortgage discharge form. For more information, contact Mortgage House and try our online mortgage calculator.