Home sales: tips on how to proceed with home loans.

Sometimes the dream of owning a home quickly ends. It doesn’t have to be about separation or unemployment. Sometimes a professional change means that homeowners have to move.

However, if you pay back a home loan for your own home, the homeowner usually has questions such as:

  • Who has to pay off the house loan?
  • Can the buyer enter the contract?
  • Does the bank have to let me out of the loan at all?

Annuity loan completed.

Annuity loan completed.

Payments with an interest component and repayment are paid over a fixed interest rate fixing period. In principle, the bank has a right to fulfill the contract.

Basically, borrowers also have the chance of an extraordinary termination in accordance with § 490 BGB for house loans in parallel to the ordinary right of termination, which allows the loan contract to be terminated after ten years.

This right can be exercised if there is an important reason, if the owner is interested in exploiting the security.

The house sale because of:

  • job-related move
  • Divorce etc.

allows you to cancel your home loan. In this case, however, the bank has the right to request a prepayment penalty to compensate for lost interest gains. However, the claim for compensation must follow certain rules – for example, it must take into account granted special repayment rights.

Right of withdrawal.

Right of withdrawal.

This so-called cancellation joker ultimately means that the cancellation period does not begin. Incorrect or unclear information keeps the revocation window open as long as the lender does not correct the errors.

However, this way out of construction financing for house sales is quite rocky. Another solution would be simpler: the buyer’s entry into the loan agreement.

Credit ratings reach a level comparable to that of the client.

The advantages of taking out a home loan are obvious, there are costs through:

  • the loss of prepayment penalty
  • the deleted deletion and
  • the omitted reappointment of the land charge saved.                                                                                                A calculation must show whether this option pays off in comparison to possibly low interest rates in new business.

Individual evidence and sources

Exceptional right of termination when selling a house.

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