When subscribing to a loan contract of nature with a mortgage, then it is better to understand the stakes of a mortgage during a mortgage consolidation transaction.
What is mortgage repurchase?
It is an operation that consists of re-arranging a set of credit agreements of various kinds into a single new loan contract backed by a mortgage registration for the amount financed.
It is more specifically a guarantee that the bank or the lending financial institution requires in addition to the other guarantees (borrower insurance cover, income, etc.) to ensure the proper repayment of the money granted to borrower (s) in the face of insolvency risks that may be encountered throughout the life of the credit.
The implementation of the mortgage is made when making an appointment at the notary’s office of the mortgage deed.
Mortgage waiver: how does it work?
Theoretically, the lifting of the mortgage registration is done automatically as soon as the mortgage restructuring loan is totally settled, ie after repayment of the entire sum lent (capital + interest) by the lender.
The lifting of the mortgage can also intervene in other cases. For example, let’s take the case of a couple of borrowers who regrouped their consumer loans and their home loan in the form of repurchase of mortgage credit over a period of 20 years (240 months).
After 5 years of the monthly repayment, they receive a cash entry allowing them to pay the loan at once, then, they proceed to the repayment of the outstanding capital.
2 years after the balance of the mortgage credit, they decide to resell their main residence. In order to allow the successful completion of the real estate sales transaction, the seller will have to first raise the mortgage registration with a notary. An approach that at a cost, its price is set according to the initial amount of money borrowed.
Without this paid action, the sale is impossible, blocked by the mortgage registration that is still running, and they will otherwise have to wait 2 years after the date of the last deadline that marks the end of the credit agreement.