Can a mortgaged property be transferred?

Know the steps to transfer a mortgaged house, so you know if it is convenient for you or not to do so and what could be some of the alternatives in case you decide not to transfer the property

"Can you transfer a mortgaged property?" and "What are the requirements to transfer a house?" Transferring a home means transferring to another person the rights to it, and where appropriate, the maintenance obligations and outstanding debts, including the mortgage loan. The transfer also implies a negotiation, since the first owner will seek in exchange a monetary amount that compensates the investment made so far.

There are multiple factors why people choose to carry out this type of transaction. Either because they are unable to continue paying the loan or because they simply want to get rid of the property based on other criteria, such as change of residence or real estate investments.

The transfer of a home is a completely legal procedure in Mexico. However, it must be taken into account that a different process is carried out in each institution or financial entity.

Can an Infonavit mortgaged property be transferred?

In the case of Infonavit, for example, although it allows the transfer of the debt, the institute does not formally recognize the change of owner, until the payment is completed and the deeds are modified. Therefore, even if another person takes over the mortgage loan, this institution recognizes the original beneficiary as the legitimate owner of the property.

Similarly, if for any reason the new owner stops paying, it is up to the previous beneficiary to pay off the entire debt on the home.

Now, if you are already convinced, the requirements to transfer a mortgage to another person and the steps that must be carried out in most financial institutions are very easy to follow and are listed below:

Steps to transfer a house

      choose a debtor

      Wait for a response from the institution that granted the credit

      Go to the bank to make the change

      Find a notary public to legalize the transaction

      Deliver the home to the new debtor

Choose a debtor

The first step in transferring a home is choosing someone with a good credit history. Choosing a debtor who is responsible is of great importance, so it is important that you investigate said person and their behavior regarding their debts, to avoid any type of real estate fraud.

Likewise, it is important that you make sure that it is not in the credit bureau and that it meets all the requirements of the financial institution for the mortgage loan to be approved. Otherwise, you will have to choose another debtor.

Wait for the response from the institution that granted the credit

After choosing the person to whom the home will be transferred, the next thing to do is contact the institution that granted the credit to notify you that you want to make a transfer.

Immediately afterwards, before carrying out any type of procedure, you must wait for the entity's response to this transaction to, now, show all the required documentation and look for a notary public to regulate the entire procedure.

Likewise, the institution will proceed to investigate the debtor, to verify that he meets the minimum requirements for a mortgaged property to be transferred, along with the rights and the debt.

Go to the bank to make the change

Another of the steps to transfer a house is that, once this transaction is authorized, both the original beneficiary and the new debtor appear at the bank's facilities to show the required documentation.

Within the documentation, the debtor substitution request must be submitted, as well as current and official identifications, birth certificates, all documents that have to do with the mortgage loan and proof that both parties are entitled.

Find a notary public to legalize the transaction

A mortgaged property can be transferred as long as the process is done legally, with a notary public following up on the process. It is important to emphasize that consultations with notaries are carried out free of charge and they only charge at the time the exclusive contract with them is made.

A notary public will be in charge of avoiding fraud, carrying out all legal procedures and attesting that the transfer is made under all the terms of the law in Mexico. Also, you can go to him at any time if any situation arises, even years after the transfer.

Deliver the home to the new debtor

Once the steps have been followed and the property is ready to be transferred, both the original owner and the new owner will be granted the listing of the house.

In this way, the new creditor will be in charge of paying off the mortgage, along with an extra amount, if the home had some kind of capital gain, which is usually very frequent.

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