Know the steps to transfer a mortgaged house, so that you know if it is convenient for you or not to do it and what could be some of the alternatives in case you decide not to transfer the property
“Can a mortgaged property be transferred ?” and “What are the requirements to transfer a house?” Transferring a home means transferring to another person the rights of the same, 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 these types of transactions. 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 investments in real estate.
The transfer of a home is a completely legal procedure in Mexico. However, it should be taken into account that each institution or financial entity carries out a different process.
Can a mortgaged Infonavit 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 rightful 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 of the home.
Now, if you are already convinced, the requirements to transfer a house and the steps that must be carried out in most financial institutions are very easy to follow and are listed below:
Steps to transfer to house
- Choose a debtor
- Wait for a response from the institution that granted the loan
- 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 to a home is choosing a person with good credit. Choosing a debtor who is responsible is of great importance, so it is important that you investigate that person and their behavior regarding their debts, to avoid any type of real estate fraud.
Likewise, it is important that you make sure that you are not in a credit bureau and that you have all the requirements of the financial institution so that the mortgage loan is approved. Otherwise, you will have to choose another debtor.
Wait for the response from the institution that granted the loan
After choosing the person to whom the home will be transferred, the next thing to do is contact the institution that granted the loan to notify them that a transfer is desired.
Then, before carrying out any type of procedure, you must wait for the entity’s response to this transaction so that, now, it can 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 so that a mortgaged property can be transferred to him, along with the rights and the debt.
Go to the bank to make the change
Another step 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 request for substitution of the debtor must be submitted, as well as current and official identifications, birth certificates, all documents that have to do with the mortgage credit, 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 monitoring the process. It is important to emphasize that consultations with notaries are made free of charge and are only charged at the time the exclusive contract with them is made.
A notary public will be in charge of avoiding fraud, carrying out all the legal procedures, and attesting that the transfer is made under all the terms of the law in Mexico. Likewise, 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, the price of the home will be awarded to both the original owner and the new owner.
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 common.
Requirements to transfer a house with mortgage credit
- Meet the mortgage credit requirements
- Be up to date with all payments
- Check the debtor’s credit history
Meet the mortgage credit requirements
Both the original debtor and the new debtor must meet the requirements to request a loan stipulated by the banking institution, whether private or through entities such as Infonavit or Fovissste.
In the case of Infonavit, the requirements are to prove that you have stable and continuous employment, have a minimum of 116 points, and be a beneficiary in the Mexican Social Security Institute.
For Fovissste, you need to be an active State worker, be over 25 and under 70 years old, have a minimum of 18 months contributing to Fovissste, request a loan application at banks that have agreements or through SOFOMES or SOFOLES.
Be up to date with all payments
This is one of the main requirements to transfer a house. The first point that the financial institution will rectify will be that the former beneficiary has made all the mortgage payments in a timely manner, as well as that the service payments are also up to date.
Otherwise, the beneficiary will be asked to cover all debts so that the property can be transferred. We recommend that, even if you plan to make a transfer, you stay current with your mortgage payments.
Check the debtor’s credit history
Another requirement to transfer a house is that the debtor has an excellent credit history. If you do not have one, it is necessary that you have a savings account or something similar, to verify whether or not you will be responsible for the debt.
Likewise, when appearing before a notary public, an act will be signed with all the responsibilities and obligations of both the original owner and the debtor, to avoid real estate fraud.
Alternatives to consider before transferring a property
- Choose a program offered by the institution to change housing
- Sell the property
- Return ownership
Choose a program offered by the institution to change housing
Now, making a mortgage transfer is always a risky process. If you want to opt for another option, many institutions offer programs that can help you not to transfer your home.
One of the best known is the one offered by Infonavit, called Cambiavit, ideal for those who want to change ownership for any factor. You can choose a property of any price, taking into account that if it exceeds the value of the current home, the difference must be paid.
Sell the property
Another viable option is to sell the property, as it turns out to be a transaction that Infonavit approves, as long as all the monthly payments are covered and there is no type of debt with the services.
Return ownership
Another alternative for those who are unable to continue paying the mortgage loan is to return the property. However, it is one of the less liked alternatives, since, with a mortgage cancellation, all the money invested in the monthly payments will not be returned.
These alternatives can help you in case you do not want to take a risk when transferring a house. Some institutions do not recognize this procedure and it could be complicated in situations such as the death of the original owner since the rights of the home could be transferred to their spouse or children.
You already know how a mortgaged property can be transferred, so if it is the type of procedure you want to carry out, take into account all the alternatives and take care of both your pocket and your assets. The most important real estate portal in Mexico, Vivanuncios, has for you the best properties to transfer in case you are looking for one.
