Can you sell a house with a current mortgage?

Most people who buy a house use a mortgage, thus having to repay the sum financed by the credit institution for the entire duration of the installments.
Given that it takes many years, often even decades, to pay off the mortgage, it is not easy to understand what to do if the need to sell the house has arisen in the meantime.
The reasons are very disparate.
Sometimes there is a need for a larger house because the family has expanded or you want to include a study or an area dedicated to work.
It is not uncommon for people to want to sell the house without buying another one, perhaps because they want to invest the money differently or are planning to move abroad.
The reason is not important as regards the procedure, which differs only in two elements: the purchase of a new house or not and the possibility of paying off the mortgage.
Selling a house with a current mortgage You can sell a house with a current mortgage Replacement of guarantee Early repayment of the mortgage Selling a house without paying off the mortgage Selling a house with a mortgage and first home bonus The bridge mortgage for moving house Selling a house with a mortgage joint owner You can sell your house with the mortgage in progress Many ask whether you can sell the house with the mortgage still in progress and the answer is yes.
In fact, the law does not prohibit selling the house while the loan is still being repaid, much less the credit institution can prohibit it.
The bank cannot prohibit the customer from selling the property for which he is paying the mortgage (except in a certain case), as long as the satisfaction of the debt is guaranteed.
In other words, you can sell your house with the mortgage in progress as long as the installments are paid and a guarantee is maintained for the institution.
This guarantee is represented by the mortgage which protects the bank from possible defaults.
In theory, selling a house with a mortgage is completely legitimate, but it is clear that it is a risky choice.
In fact, there are not many buyers willing to do so, as they would risk being deprived of the property in the event of non-payment by the seller.
To solve this problem there are various solutions, including alternatives to repaying the mortgage and therefore more accessible.
read also Selling a house with a mortgage is possible: here's what the buyer risks.
Replacement of guarantee To free the house to be sold from the mortgage due to the current mortgage it is possible to implement a replacement of guarantee.
For this purpose it is necessary to submit the request to the credit institution, asking to move the mortgage to the new property to be purchased.
It is necessary that the latter has a value at least equal to the residual part of the debt towards the bank.
Clearly, those who have other properties can request the replacement of the guarantee on one of these too.
Thus, buyers are protected from risks, but everything depends on the response of the bank, which can refuse the replacement if deemed insufficient.
Early repayment of the mortgage After replacing the guarantee, the simplest method for selling the house (freed from the mortgage) is to repay the mortgage, i.e.
the balance of the residual debt towards the credit institution.
Early repayment is the quickest solution to selling the house, but it is often impossible to implement due to lack of liquidity.
In reality, however, it is possible to pay off the mortgage without bearing the entire expense.
This is possible when the sum obtained as an advance or deposit from the buyer (for example in a compromise) is sufficient to pay off the debt, otherwise it is also possible to stipulate an agreement with the buyer to pay the agreed sum directly to the bank.
An intermediate path is the balance paid by the seller at the time of the deed, subject to agreement with the buyer.
In this way the house is sold, possibly receiving the difference in cost, and the buyer runs no risk, as he personally makes the payment.
Despite this, the buyer may be unable or may not consider it appropriate to pay in this way (since he must pay the entire sum in one lump sum).
Selling a house without paying off the mortgage In the event that neither the owner nor the buyer is able to pay off the mortgage, there is another possibility, namely taking over the mortgage.
The buyer can in fact take over the current mortgage and the payment of the remaining installments, including interest.
In this way the sale is facilitated by the fact that the buyer is directly responsible for the debt and responsibility for compliance.
The seller, on the other hand, will have to receive the remaining amount according to the agreed sales price.
This is possible when the buyer is willing to accept all the conditions of the original contract and the bank approves the assumption, after evaluating the risk of insolvency.
Obviously, it is easier to obtain approval from the credit institution, the smaller the residual debt left by the former owner.
Selling the house with a mortgage and first home bonus As already mentioned, the bank has the final say on the replacement of the guarantee and on the assumption of the mortgage, even the conditions for early repayment are provided for in the contract.
The credit institution cannot, however, deny a priori the sale of the house with the current mortgage, unless the property was purchased with the First Home Bonus and less than 5 years have passed.
Only those who have received or purchased another property with similar characteristics, to be used as a first home, within the first year can sell the property thus purchased before 5 years have passed.
However, in this way you lose the right to the benefits provided.
read also First home bonus 2023, who can still request it? The bridging mortgage for moving house Another way to sell the property is the granting of the bridging mortgage, also known as a "moving house" mortgage.
This is precisely a loan aimed at purchasing another house, useful when the purchase and sale times do not coincide and the customer does not have the necessary liquidity to make the purchase.
The bridging loan can therefore be very useful, but is still subject to the acceptance of the credit institution (not yet common in Italy) and is often subject to high interest rates, given that it has a short duration.
The bridging loan can be convenient because it allows you to purchase the property without giving up an opportunity, while providing a possible replacement of the guarantee to the bank or obtaining more time to proceed with the sale.
read also What is the bridging loan and how does it work? Who cares? Selling a house with a joint mortgage All the rules relating to the sale of the house with the current mortgage and in general to any other type of operation on the property also apply when the mortgage is jointly held, as long as there is the consent of all the owners.