Unraveling the Mystery of Mortgages: What You Need to Know

What is a Mortgage?

When you buy a house with a home loan, you can take out a mortgage to ensure that the money lent by the bank will be repaid. In summary, it is a guarantee that minimizes the risk of default, usually using the property itself as collateral. However, it is also possible to mortgage the property of third parties, such as that of family members of the borrower.

In Which Situations Can the Mortgage Be Canceled?

There are three main scenarios that can lead to the cancellation of the mortgage: in the sale of a mortgaged property, in the payment of the home loan debt, or in the expurgation of the mortgage.

Sale of a Property with a Mortgage: When selling a house financed by the bank, you can cancel the mortgage if the amount obtained from the sale is sufficient to pay off the loan. In this case, you must request the cancellation of the mortgage and register the sale of the house to the new buyer.

Payment of the Home Loan Debt: When you pay off the home loan debt, you can request the cancellation of the mortgage, as there is no longer a need for collateral. After cancellation, the bank will send you a document confirming this action, and your contractual obligations will be fully met.

Expurgation of the Mortgage on the Acquired Property: If you buy a mortgaged property, you can cancel the mortgage after the acquisition, but only through a judicial process. After registering the purchase, you are no longer responsible for paying the previous mortgage. However, you must inform the creditors, settle all debts associated with the mortgage, or reach a payment agreement, which may involve an amount equivalent to the value of the property purchase. After these procedures, you must initiate a legal process with the court to prove that everything was done correctly.