Selling a property with mortgage

One of the most frequently asked questions among homeowners is whether they can sell their property even if they still have a mortgage to pay off. The answer is yes: it is entirely possible to sell a mortgaged property, but there are several important aspects to consider. In this article, we explain everything step by step.
 

What happens to the mortgage when I sell my home?

When selling a property with a mortgage, there are several common options:

1. Paying off the mortgage with the proceeds of the sale: This is the most common route. If the sale price covers the outstanding debt, you can use that amount to cancel the mortgage during the notary signing.
2. Mortgage subrogation by the buyer: The buyer can choose to take over the existing mortgage (subrogation), assuming the debt under the same terms. This option requires bank approval.
3. Selling at a loss (dation or agreement with the bank): If the property's value is lower than the debt, you may negotiate with the bank to cover the difference or, in specific cases, offer the property in lieu of payment.
 

What steps should I follow to sell a home with a mortgage?

1. Request a mortgage payoff statement: This document, issued by your bank, states the exact amount you owe. It’s essential for calculating the sale price and negotiating with the buyer.
2. Inform the buyer: It’s important to let the buyer know that the property has an existing mortgage. Transparency builds trust.
3. Coordinate with the bank and notary: During the transaction, the notary will retain the amount needed to pay off the mortgage and send it directly to the bank.
 

What costs are involved in paying off a mortgage?

Selling a property with a mortgage entails certain costs, such as:

- Early cancellation fee (if applicable).
- Notary and registry fees to record the cancellation in the Land Registry.
- Possible agency fees if you choose to hire one.
 

Why work with a real estate agency like Narixa Villas?

Selling a mortgaged property requires coordination, legal understanding, and market experience. At Narixa Villas, we guide you through every step:

- We evaluate your property’s value.
- We manage all documentation with the bank and notary.
- We help you find qualified buyers.
- We maximize your property’s visibility.

Yes, you can sell your home even if you still have a mortgage. The key is having the right advice and properly planning each stage of the process. At Narixa Villas, we make the selling process easier, more transparent, and secure.

Have questions? Contact us for a no-obligation consultation.