What is the mortgage payment? How to take over a loan


Do you know what the mortgage payment is? This is an operation that allows you to take over from another borrower, making your own mortgage. What does it mean? During the loan amortization period it is possible to “sell”.

The loan to a third party

mortgage money cash

Which from that moment will assume the obligation to repay the remaining installments. The takeover takes place through a contract between the person who has taken out the loan (the loan) and the one who takes over (the contractor). With this agreement, the contractor undertakes to reimburse the financing for the purchase of the property, according to the contractual arrangements established between the bank and the bank. Usually, the takeover is exercised when you buy a house from a builder , who had stipulated a building loan for the construction of the building.

When you buy a property directly from a construction company, it is likely that this will require, among the conditions of purchase, even the taking over of the mortgage. The consequence of this choice is that the new owner will have to repay the remaining part of the loan taken by the company for the construction of the building. For the bank that has disbursed the loan nothing will change, because it will continue to receive payments for repayment of the loan. Instead, the construction company will not have to continue to pay the loan, extinguishing it in a single solution before the sale. The loan will pass to the buyer, even if with limits: the capital that the collector will have to repay will not exceed 80% of the value of the property , in case of taking over a mortgage from a builder.

Why should the buyer accept this proposal?

Why should the buyer accept this proposal?

The main advantage is that with the take-over it is not necessary to open a new mortgage , with all the associated expenses, such as the preliminary investigation, the registration of the mortgage and so on. The takeover allows you to “inherit” the loan from the construction company, taking over payments. But we must be careful in accepting this option, because for example some manufacturers ask for the reimbursement of the expenses incurred at the opening of the mortgage: in that case, the economic advantages would be reduced.

On the other hand, the operation of a mortgage loan is slightly different

On the other hand, the operation of a mortgage loan is slightly different

the characteristics of the practice are quite similar, but when you take over a loan from a private seller you will have to pay all the remaining capital to be repaid, even if this amount exceeds the 80% of the property value. In any case, it is not enough to know what the loan is, but you need to find out in detail about the original conditions of the loan.