Although many people think that with the payment of the last installment of the mortgage, it is considered that the mortgage has been canceled, the reality is no. For a mortgage to be canceled it is necessary to make a mortgage cancellation or cancellation.
In the following article we collect what are procedures to be followed to perform the lifting mortgage and the expenses involved in that operation.
Once the last mortgage payment has been paid we can do two things: carry out the mortgage lien or do nothing.
If we decide not to do anything, the mortgage registration information will remain in the relevant registry for the next 20 years, at which point the registration should be automatically deleted.
Although raising the mortgage is not a mandatory procedure, it is decided to make the removal as soon as possible, because if we want to take any action on the real estate, whether to request a new mortgage on it or sell it, it will not appear in the registry as a free asset of loads.
If we want to carry out the mortgage lien we have to know what the procedures and expenses we have to deal with.
Procedures to make the mortgage lien
If we decide to raise the mortgage, we have two possible ways:
- Do the lifting of the mortgage through the financial entity with which we have the mortgage.
- Carry out the mortgage lending on our own.
If we raise the mortgage through the financial institution, the procedure is very simple because we should only ask the entity that we want to do the mortgage lien. The entity has an obligation to do so, but can perform the operation through a manager.
If we do not have much time and the expenses of Managerial do not suppose us greater problem, this would be the best option.
If, on the other hand, we decide to raise the mortgage on our own account, we will have to follow a series of procedures and face a series of expenses.
- The first step to getting a mortgage is to ask for a certificate of zero debt balances. Our financial institution will be obliged to provide us with this document free of charge and is no more than a document where the financial institution confirms that all the mortgage capital has been satisfied.
- Once we have in our possession the certificate of zero debt balances, we must deliver it to a notary and request that the corresponding deed of cancellation be made. To do the writing is necessary that it is signed by the attorney of the financial institution with whom we have the mortgage, who cannot charge you a supplement for doing this procedure.
- The notary is in charge of managing with the financial institution the cancellation of the mortgage.
- The next step is to fill in the form of the Tax on Documented Legal Acts, included in form 600. Said document must be signed in the Treasury delegation of our autonomous community. Although we must make the statement as the act of foreclosure is subject to said tax, it is exempt, so it will not be an expense.
- Once the notary has processed the mortgage cancellation with the financial institution, we will have to collect the notarized deed and pay the amount of the deed. This process may take a few days.
- Finally, we must go to register with writing and two corresponding forms: the form of tax and stamp duty form lifting the load on the record.
If we want to make sure we have done all the paperwork correctly, we can ask for a simple note on the property register to make sure that our house is free of charges.
Mortgage clearing expenses
Once we decide to carry out the mortgage lien, we have to take into account the cats that we are going to have to pay.
If we decide to do the mortgage lending through the financial institution or through a manager, the cost can be between 200 and 400 dollars.
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While if we raise the mortgage on our own, the expenses that we will have to assume are the following:
Although the zero debt certificate that we have to ask our financial institution should be free, many banks and entities charge us for this document more than 100 dollars.
Notary fees: this expense is around 100 dollars, although it may be lower or higher depending on the notary to whom we turn.
Expenses of the Tax on Documented Legal Acts: although the cancellation or lifting of mortgage is subject to this tax, it is exempt; therefore we will be exempt of payment.
Registration costs: registration costs have a cost of at least 25 dollars.
So if we do it through the financial institution the cost of lifting the mortgage can range from 200 to 400 dollars. And if we decide to carry out the lifting of the mortgage on our account, the mortgage can cost us between 125 and 250 dollars.
It should be remembered that the mortgage lien is not compulsory, although it is essential if we are going to sell the real estate or we want to request a second mortgage on said housing.