Selling a House with a Current Credit
If a house is to be sold, for example due to a divorce or the death of a resident, high costs may be incurred if an early repayment fee has to be paid.
Basically, a loan contract can be revoked if you are still in the fixed interest period. In this case, however, an early repayment fee is due.
When is an early repayment fee to be paid?
The early repayment fee is always due if the loan lies within the fixed-interest period. The period in which a fixed interest rate exists can be taken from the concluded loan agreement or requested from the respective credit institution.
What costs are to be expected?
The amount of a prepayment penalty always depends on several factors. The remaining term of the fixed interest period, the amount of the loan taken out and the fixed interest rate are decisive. A calculation is made by the contractual partner – the lender. Early repayment compensation calculators made available on the Internet give an approximate impression of the costs to be expected. However, an individual calculation by the bank is indispensable.
Can you also do without early repayment fee?
There are alternatives. The following options exist for selling an existing loan contract:
- The buyer of the house has the possibility of rescheduling. This means he takes over the existing loan agreement. Thus a notice of the credit can be avoided.
- If the seller wishes to acquire another object, this can become the object of the contract. The real estates are exchanged thereby, the contract continues to run. However, this requires the consent of the lender.
- If the salesman finds an error in the revocation instruction in the existing loan contract, then he could use this. However, this is not the rule.
It is advisable to have a revocation instruction checked legally exactly. This check can be carried out by the borrower himself. On the other hand there is the possibility to instruct the consumer protection. Or one asks a lawyer, who specialized in the field, for support. With the examination the following aspects should be taken under the magnifying glass: If all formalities were kept, is the revocation instruction comprehensible for all contracting partners and is it contentwise complete and correct?Source: https://www.styn.immobilien/