What is and how does the loan take out to finance the purchase of a home? To take on oneself means to assume an obligation; therefore, it is easy to understand that the taking over of the loan is a contractual commitment with which a subject undertakes, with respect to a credit institution, to repay the subsequent installments (including both the principal and interest installments) up to expiration of the loan agreement.
How does the mortgage take on?
The buyer, in addition to purchase ownership of the property, says in the act of buying and selling to take on the mortgage and agrees to pay the installments to the bank, as it should have the first debtor. The legislation speaks of joint and several liability : this means that the creditor can address indifferently to the purchaser , who has taken over the loan, or to the seller, who was the original debtor.
But not always! In the case of release , the seller will be released from the obligation to pay the installments of the mortgage loan that the buyer will pay.
What is internal assault?
In the event that the bank does not accept the takeover, it is possible that between the accolate and the appellant, or between the seller and the purchaser, there remains an internal assumption relationship between the parties. In this case, the seller of the property agrees with the buyer to assume the obligation without involving the credit institution. The buyer fulfills the contracted obligation and holds the seller harmless.
Why take on the mortgage?
The advantage deriving from taking on the loan consists in saving the expenses related to the start of a new mortgage (notary fees, appraisals, etc.). Even if the debtor changes, the credit institution remains the creditor of the repayment of the obligation.
The leader does not have to bear the costs of early repayment and cancellation of the mortgage . From the point of view of the accolade the obvious advantage lies in not having to pay off the entire loan, but only a part. It is always a good idea to carefully evaluate all the proposed conditions as they could cancel the benefits deriving from the taking over of the loan.