How to transfer a mortgage to another person

Is it possible to transfer a mortgage to another person?

The relationship between the lender and the borrower is regulated by Federal Law No. 102 “On Mortgages”, according to which a change of borrower is allowed only with the consent of the bank.

The procedure for reissuing a mortgage will not bring any benefit to the lender, however, the bank can accommodate the client halfway to get their funds back.

Re-issuance of a mortgage loan is a complex procedure, which is carried out only after obtaining the consent of the credit institution.

It is worth remembering that the bank will agree to reissue a mortgage to another person only if it is absolutely confident in the solvency of the new borrower.

At the same time, a credit institution will never give its consent to reissue a mortgage unless the borrower has a good reason for doing so. What reasons can be considered serious?

The most common reasons are:

Loss of the borrower's ability to work and, as a consequence, solvency.
The presence of severe or incurable diseases.
Moving to another area.
Divorce of spouses.

The above reasons entail the need to reissue the loan, but this can only be done in certain ways, such as:

re-issuance of a loan to another citizen of the Russian Federation within the same bank;
refinancing a mortgage with another bank (refinancing);
re-registration of a mortgage loan for another residential area.

There are currently no other types of mortgage re-registration . Banks can agree to this procedure only in the above cases and for the reasons stated above.

The person to whom the mortgage will be reissued must meet all the bank’s requirements regarding reliability, financial reputation and the availability of the necessary documents. Only after successfully passing all checks will the bank agree to change the borrower and reissue the mortgage loan.

In what cases is a mortgage transfer required?

The bank is not an interested party in this matter, since it is important for it that payments on the issued loan are received on time. But in some situations he can meet halfway. True, there must be reasons for this. Here is a list of circumstances under which a bank considers the possibility of re-issuing a mortgage loan:

Dissolution of marital relations. If spouses divorce, then re-registration of the mortgage is a mandatory procedure, since during the marriage the mortgage issued is considered the joint property of the spouses. When one of them leaves the marriage, the other must assume obligations to repay the loan and become the owner of the residential premises, possibly with the allocation of a share to the second spouse, but only after the end of the mortgage loan repayment.
Loss of health. If the main borrower for some reason cannot continue to work and does not have the funds to pay off the mortgage loan, then he can transfer the bank loan to his relative or a third party. But it is worth noting that if life and health insurance is issued, then in this case, re-issuance of the mortgage is not required, since the insurance company is obliged to pay the debt in full.
Changing of the living place. Sometimes life circumstances force you to change your place of residence, for example, move to another city. There is no need for a mortgage apartment. In this case, you can do two things: repay the bank loan in full, sell your home and move in, or re-register the mortgage to another person. In the latter case, there is no guarantee that the bank will give a positive decision.
Deterioration of the borrower's financial situation. For the bank, this is a valid reason, because if a person loses his job or his income decreases, he will not be able to repay the loan in the future. Here, re-issuance of a mortgage loan is a necessary measure, but the borrower loses the purchased property.

Please note that the bank may refuse to reissue a mortgage loan, so the issue will be resolved strictly individually.

The borrower first needs to come to the bank and explain the current situation to the loan officer. He will advise in more detail on what is needed to re-register a mortgage, and whether such a possibility exists. It would be a good idea to study the loan agreement in more detail before visiting the bank.

Is it possible to re-issue a mortgage at Sberbank to another person?

Only large credit organizations, including Sberbank, are involved in re-issuing mortgages.

If the borrower indicated a decrease in his solvency as the reason, then Sberbank will offer mortgage restructuring for a period of up to 10 years at the interest rate in effect at the time of application (for more details on the conditions for restructuring a mortgage at Sberbank, see here).

The absence of an account with Sberbank will increase the rate by 0.5%. In this case, the borrower will have to document his insolvency.

You can re-issue a mortgage at Sberbank if:

replacement of collateral;
withdrawal of one of the parties to the agreement;
extension of the contract term;
transfer of debt repayment obligations.

A mortgage taken out from Sberbank will be more likely to be reissued if the applicant plans to combine mortgage and other loans.

In this case, the bank will raise the rate by 1% if the client:

refuses to insure his life, health, and ability to work;
cannot provide the bank with loan documents;
The loan registration process is underway.

Sberbank may also offer the client to re-register the agreement with another, solvent borrower. An alternative re-registration option may be to replace the collateral object (for example, to another apartment). But this option is quite rare in practice.

In what cases is it necessary to withdraw a co-borrower from the mortgage?

It is required to remove the mortgage participant and make changes to the loan documentation in the following cases:

Divorce of spouses, one of whom is the main borrower. In some cases, it is possible to replace the payer if the solvency of the remaining participants does not satisfy the bank's requirements.
Death of one of the borrowers. Changes in the composition of mortgage participants are made on the basis of a death certificate.

Renewal of debt obligations will also be required if one of the persons specified in the loan agreement moves to a permanent place of residence in another country.

Does the bank have the right to refuse to withdraw a co-borrower?

Lenders most often try to find any reasons for refusing to change the composition of participants in a loan agreement due to the fact that this procedure requires lengthy coordination with management, drawing up new documents and making changes to the banking program. An exception is the death of one of the borrowers (including the main one), when the lender cannot refuse the withdrawal of a deceased individual.

In the event of a divorce, the bank may refuse to withdraw a co-borrower in the following cases:

there are no documents on the regime of ownership of mortgage property after divorce;
insufficient solvency of one of the spouses after a change in the composition of the parties to the contract;
there is no confirmation of a change in marital status (divorce certificate).

Is it possible to voluntarily remove a co-borrower?

There are cases when a participant in a mortgage agreement wants to withdraw from the debtors due to the impossibility of independently obtaining a mortgage or consumer loan. The bank will agree to change the conditions only if it is replaced by another solvent client who will be subject to debt obligations, however, such circumstances are not considered a valid reason and a positive decision depends on the loyalty of the bank’s management.

If there are no objective reasons for withdrawal, it is impossible to remove a participant in the loan agreement only at the request of the title borrower.

Generally, the primary applicant's spouse cannot voluntarily cease to be a co-borrower unless there is a prenuptial agreement between them.

How to transfer a mortgage to another person?

Re-registration of a mortgage to another person is possible if:

the new borrower will be solvent;
one of the co-borrowers withdraws from the agreement;
The bank was provided with additional collateral.

Each bank independently determines the conditions for re-issuing a mortgage loan. The general scheme of the re-registration procedure will be something like this:

The client contacts the bank with a corresponding application, in which he must indicate a good reason for the need for re-registration.
Finds a buyer for a mortgaged apartment (except for those cases when the mortgage is reissued to another family member).
Collects the necessary package of documents for the buyer. It is worth remembering that the new borrower must have a clean credit history and a stable official income.
Submits a package of documents for consideration, attaching to it an application with a request to re-register the mortgage to another person.
The bank reviews the application and makes a decision on it.
If the candidacy of the new borrower is approved by the bank, then a loan agreement is concluded for the portion of the debt remaining to be paid.

A borrower transferring a mortgage to another person should remember that throughout the entire re-registration process until the bank enters into a loan agreement with the new borrower, the mortgage is still on him and he will have to make payments on time according to the schedule.

How to motivate a bank to reissue a mortgage

To change the borrower, permission from the bank is required. Not every bank will agree to a replacement. Several requirements must be met:

The new client must meet all standard requirements:

his income must be the same or greater than that of the previous payer. Read about what salary is enough to get a mortgage loan in this article;
the former payer, for objective reasons, can no longer fulfill its obligations. In this case, the apartment owner can use other ways to resolve the issue; it is not necessary to give up the property and sell it to another person. If you temporarily cannot pay your mortgage, then you will learn about what can be done from this review.

Most often, loan renewal is required in the following cases:

in case of serious illness or disability of the borrower;
with a sharp deterioration in financial situation;
during a divorce. Read more about how to properly divide a mortgage during a divorce at this link;
when moving to another city or abroad;
upon the death of a close relative with whom payments were made.

It will most likely not be possible to perform manipulation just like that, without any special reason. Banks are extremely reluctant to change the terms of agreements without serious reasons.

The bank should be convinced that re-issuing the agreement is the only way for it to save money and not have to deal with future delinquencies.

Features of re-registration of a mortgage in case of divorce with children

When re-issuing a mortgage loan to himself or to his wife during a divorce, in addition to the above-mentioned Federal Law, the borrower must also refer to the Family Code (Articles 33-39, 45, 60), according to which not only the interests of the spouses are protected, but also the interests of minor children.

Since the spouses bear joint responsibility for the children, the bank will force them to repay the loan jointly after the divorce. The division of mortgage debt occurs differently in each case, since everyone has different incomes and circumstances.

The following options are possible:

Making changes to the mortgage agreement and dividing responsibility for repaying the debt into established parts with the consent of the spouses.
Division of debt and apartment according to a marriage contract or court decision.

The mortgage can be reissued only to one of the spouses if the bank is satisfied of his/her financial solvency, reliability, and good credit history.

If a husband or wife refuses to contribute money to pay off the mortgage, then after the divorce the debt passes to the shoulders of the second co-borrower . If he disagrees, the apartment will be put up for sale by the bank.

If a child is registered in the apartment, he must be discharged . In this case, the court may give the parents a deferment to find new housing.

If the child is not deregistered in time, the guardianship authorities will raise the issue of depriving them of parental rights on the basis that the parents are unable to provide normal living conditions for the children.

Mortgage renewal step by step guide

The first step for the borrower is to contact the bank. Here you will need to get advice, explain the current situation, and also clarify the possibility of re-issuing a mortgage loan. To confirm the need for re-registration, the bank will require documents.

For example, if the reason was divorce, you will definitely need a certificate of divorce and the presence of the spouse who wants to get out of the loan agreement and the one who wants to register it in his name. If the borrower has lost his job, he will need a work book with a record of dismissal and a 2-NDFL certificate for past periods. If the reason is related to the borrower's health, a medical report is required.

If the bank gave a positive decision. He should explain the process of signing a mortgage agreement. Probably, a certain date will be set for this, on which borrowers will have to prepare the necessary documents. Among them, there must be confirmation of the creditworthiness of the person taking on the obligation to repay the loan. Then, a date is set for signing the relevant agreement.

Transferring the mortgage to another person at the bank is not enough; re-registration of the mortgage will be required. And before that there is a procedure for registering property rights. If the borrower undertakes to repay the loan, it means that he is the owner of the residential premises and he needs to register his property rights with Rosreestr.

Here a situation may arise between the previous and current borrower, due to the fact that each of them invests certain funds in the purchase of an apartment. This means that everyone has their own shares in it. The collateral is real estate in full, as indivisible property.

List of documents for re-registration of a mortgage

The list of documentation for re-registration of a mortgage includes:

Russian passport;
documents confirming employment;
certificate of earnings;
application form.

Additionally, the creditor bank may request:

SNILS;
TIN;
documents on marital status;
military ID;
international passport;
information about the property owned by the applicant.

Only a Russian passport and a signed application will be required from the previous borrower.

Documents for withdrawal of a co-borrower

To change the composition of the participants in the mortgage agreement, it is necessary to submit to the lender an application to change the terms of the mortgage according to the sample established by the bank or in free form from all borrowers specified in the loan agreement

. Additionally, when submitting such an application, you must provide:

Original and copies of all pages of passports of all borrowers: main, output/input.
Originals and copies of documents on marital status, including a death certificate, marriage or divorce certificate, marriage contract, birth certificate of children (if available).
A copy of the work record book, duly certified by the employer
A certificate of income for the last 6 months (both of the main borrower and all those who will presumably be specified in the new terms of the loan agreement).

Commercial banks and credit organizations, including Sberbank, VTB, consider such requests within 10 working days

Possible reasons for refusal to re-register

Banks usually refuse to re-register a client for the following reasons:

the borrower has made several short delays (up to 3 days) or one long one (20-30 days);
the client has no insurance or insufficient solvency;
due to bad credit history or insufficient solvency;
if the borrower is under 21 years old or over 60 years old;
if the reasons for re-registration are unfounded.

Transferring a mortgage to another person is quite troublesome . The most important thing that is needed is the consent of the creditor bank.

If all requirements for borrowers are met and this procedure is justified, large banks, such as Sberbank, can transfer the mortgage to another person.

Recommendations when preparing to withdraw participants from a mortgage

Make an approximate calculation of solvency in case of exclusion of a co-borrower. You can ask for help with calculations at the bank branch where the mortgage was issued.
Prepare documents, including income certificates.
Prepare an application to the bank in advance, in which you present all the facts in a reasoned and consistent manner.
Find one or more co-borrowers who will meet the bank’s requirements, if necessary, to increase total income.

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The need to sell a home can arise at any time and for reasons that are difficult to predict. Deterioration in financial situation, relocation, family expansion and the need to purchase a more spacious home - all these are just the main reasons why there may be a need to sell. It is extremely important to know how to transfer a mortgage to another person so as not to miss out on your profit when selling and not to fill out a lot of additional paperwork.

In fact, re-registration of a mortgage is an excellent solution both for those who want to quickly sell their home and for those who want to officially transfer their debt obligations to someone else. Sometimes this allows you to maintain real estate when your income level decreases.

In our article we will look at whether it is possible to transfer the mortgage to another person if you do not plan to sell the apartment, and also consider what obstacles there may be to completing such a transaction.

In what cases does Sberbank refuse a borrower and not reissue a mortgage?

The bank may refuse the new counterparty and not re-issue the mortgage agreement. This decision is due to the following reasons:

Having a criminal record and administrative offenses;
Bad credit history;
High debt burden (more than 50% of family budget income is spent on repaying loans);
Negative information about the identity of a potential counterparty on social networks and search engines (compromising photographs, dubious videos, etc.);
Lack of documents confirming income level and employment;
Inappropriate appearance and inappropriate behavior during a credit interview;
Low official income;
The person is a defendant in enforcement proceedings initiated by the FSSP.

Sberbank employees check not only the new person, but also his employer. If a company has a dubious reputation and a high debt load, then re-issuance of a mortgage will be denied. The inner circle of the potential debtor also comes to the attention of the Sberbank manager. Any negative information may cause the application to be rejected. Is it possible to re-issue a mortgage to another person at Sberbank? The mortgage debt can be transferred to a person who meets the regulatory requirements of Sberbank.