There is nothing scary of buying a mortgaged property

If you've found the dream home, but it has weights, do not rush to quit. The purchase of the property mortgaged for the benefit of the bank, is not at all complicated. You only need to have prior knowledge of how to proceed in this case, to eliminate the financial risk.

The following scenario is possible: the amount the seller owes is 100 thousand BGN, and the amount that the buyer must pay is 90 thousand BGN. What is the best option for the buyer - to buy property with the burdens and let them settle, or repay first the weights and then conclude the deal?

In this case the buyer has a few options. Naturally, when the buyer buys the property he would wants the mortgage to be cancelled. It is therefore necessary to clarify with the bank whether it will provide other security for the balance of the loan or this residue will be repaid with funds from the debtors.

For the buyer it is important to have a formal letter from the bank, which says that after the sum from the sale of property (90 000 BGN) enters in the bank account, it will be issued a request for deletion of the mortgage. Of course, the entire amount of the sale must go for repayment of the debt.

All payments (deposit, interim payments, etc.) must be made by bank transfer to the account of the debtor in the Bank-creditor. This should be very carefully and thoroughly described in the preliminary contract.

The buyer should not be worried because of the early repayment of the loan and the costs associated with it. It is a responsibility of the seller and they are not calculated in the price of the property.

Positive is the fact that the Bank has accepted the property as collateral, which means that all documents about the property are in order. Banks usually make very serious legal analysis of the proposed collateral and, if there is something that is not as it should, refuse to accept it.

The money have to be translated in the account of the owner, but with the condition - to be used for repayment of the credit only. This can be done in a special account with titular the seller of the property and designed to repay the loan. The documentary clearance of the transfer of the money is not a problem of the buyer. The account of the seller is created specifically for this case. He doesn't have the ability to draw money from the account. The money received go only to the repayment of the debt. This condition is placed upon opening the account.

Whether the rest of the ten thousand will be paid in advance or other collateral will be provided, this should be made clear before the deal. For the buyer it is important to have a letter from the bank, with which she assures that after receiving the 90 thousand BGN and their transfer to the partial or full repayment of the loan, the mortgage on the property will be deleted.

Property consultants do not recommend the buyer to enter into debt (buying the property along with the mortgage). In this case the bank will want from him all the documents and income that are standard required when applying for a loan.

For a guaranteed successful conclusion is better to be hired someone who knows exactly what needs to be done.