The buyer often will not allow the real estate agent to inform them about the property that has a mortgage thinking that buying such a property is impossible, so we recommend that you continue reading.

Buying a property that has an existing encumbrance – MORTGAGE in the Land Registry can be the subject of a purchase on the buyer’s housing loan and then we are talking about a second-ranking mortgage.

When you find a property that has a mortgage as an encumbrance, and you want to buy it with a housing loan, do not be discouraged. To purchase an apartment with a mortgage, we will familiarize you with the procedure and paperwork that awaits you.

➡️First of all, it is necessary to obtain a Certificate of the remaining debt of the seller with the bank where the apartment is mortgaged and to request a Letter of Intent that the bank will issue a DISCHARGE PERMIT after the claim is settled;
➡️The process of submitting your request for approval of the housing loan;
➡️Registration of the second-ranking mortgage, disbursement of funds to the lender/buyer;
➡️The seller is obliged to settle the remaining debt and provide the Discharge Permit to the cadastre service (RGZ);

Do not let the existence of mortgages on properties deter you from buying and missing out on desired properties! The purchase procedure may take a little while, but it is legally and lawfully completely ALLOWED.