I have no experience in the real estate business. So I was wondering: If you want to sell your house and buy another house of equal or lesser value, is it possible to somehow just "transfer" your mortgage over to the other house (keeping the same rate) and not have to get a completely new mortgage?
Thanks for the help
2007-10-17 05:19:47 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
It is theoretically possible as the house is collateral for the loan to modify the mortgage to substitute a different property. You would record a new legal description but not owe new documentary stamps or taxes. This is more common in blanket mortages involving multiple properties. Residential mortgages tend to be "cookie cutter" so they are not likely to be willing to customize your loan. Good luck.
2007-10-17 08:22:45 · answer #1 · answered by attorney_johnson 3 · 0⤊ 0⤋
Absolutely not. A mortgage is given for a particular property. If you sell this property, the mortgage has to be paid off and a new mortgage has to be obtained for the new property.
By the way, if you had a line of credit on the first property, you cannot "transfer" it. It also has to be paid off, when this property is sold. You can get a new line of credit on your new property. In short, ALL debts have to be paid off, when the property is sold.
2007-10-17 12:48:37 · answer #2 · answered by REALTOR 3 · 0⤊ 0⤋
No, mortgage liens are secured by specific real property. Whe you sell a home in order to clear the title for transfer to the new owner the outstanding mortgages and liens must be paid in full.
2007-10-17 12:31:10 · answer #3 · answered by mazziatplay 5 · 0⤊ 0⤋
Not in the US. It is possible in the UK, however not all lenders will do it.
2007-10-17 12:55:03 · answer #4 · answered by Bostonian In MO 7 · 0⤊ 0⤋