How to Remove a Residential Mortgage?
How to Remove a Residential Mortgage? Citizens who use mortgage loans will later have all the rights on the relevant house by carrying out the housing mortgage removal procedures. In order to remove the mortgage in question, first of all, the loan debt must be completely over. When there is an ongoing mortgage loan debt, mortgage removal cannot be done.
For transactions, you must first apply to the bank and write a petition. This petition, which we call mortgage release, is sent to the title deed by the bank online. At the next stage, a fee will have to be paid to the title deed. After paying the relevant fee, an investigation is initiated regarding the removal of the mortgage on the residence.
Why is Mortgage Applied in Housing Loans?
Housing loans have a higher amount compared to other types of loans. In this process, banks apply mortgage transactions to guarantee themselves. Starting from the moment you make loan applications, a mortgage is placed on the relevant residence until the debt is fully repaid.
Until the entire debt is repaid, the mortgage on the house does not disappear and your house is in a sense held in pledge at the bank. If there is any malfunction in the repayment of the debt, the banks will take back the debt by making a sales decision about the relevant house. During the mortgage process, it will not be possible to sell the house in question or to make any transfer transactions regarding the title deed.
Documents Required to Remove a Residential Mortgage
Since the day mortgage removals in mortgage loans were moved to the online environment, paperwork can be easily carried out online.
You will need the following documents in the mortgage removal procedures that you will initiate by applying to the bank:
- A letter stating that the debt has been paid
- Invoice for the payment of the tuition fee
The documents mentioned above are delivered to the title deed by the banks in accordance with the 88th article of the Land Registry Regulation. After paying the said fee, you can send the relevant payment information to the bank. Then, after your request for a housing mortgage removal petition , the bank’s no debt letter is sent directly to the title deed.
How Much is a Residential Mortgage Removal Fee?
When you carry out a mortgage removal process on the house you bought with a home loan, you will be asked to pay certain fees legally. The said fees are updated every year. This fee is calculated over the Land Registry and Cadastre fees. When the data of 2020 is taken as basis, we see that the related mortgage removal fee is 37.5 TL .
When you deposit this fee to the bank, you will receive a letter of release. This letter indicates the attachment that the debt has been completely paid off. According to the relevant law articles, the only current fee that can be received from individuals is 37.5 TL. If your bank demands a fee from you, you have the legal right not to pay this fee. You can pay the determined fee removal fee directly from the bank branches.
In addition, it is possible to pay tuition fees via internet banking. Whichever channel you choose for payment, you must provide these receipts. You can obtain the receipt by e-mail for online fee payments.
How Long Will a Housing Mortgage be Removed?
There are certain deadlines operating legally for removing residential mortgages. When you apply to the bank to remove a mortgage, the relevant documents are delivered to the title deed within the same day or within the recurring business day. When the relevant documents are submitted to the title deed, the housing mortgage removal period begins. After the relevant documents reach the title deed, the mortgage removal process will take approximately 1-2 weeks.
Transactions in title deeds take a minimum of a few weeks, and after the necessary investigations, the decision to remove the mortgage is made. The files of everyone who applied for mortgage transactions at the land registry will be put in a certain order. In turn, the documents are reviewed and the final mortgage decision for the home you own is determined.
Can a Mortgage House be Sold?
Until the mortgage expires, all legal rights belong to the bank in the houses purchased with mortgage loan. In this process, it is not possible to directly carry out the related sales transactions. However, in this process, it is possible to sell the mortgaged house under certain conditions. In this case, you must first agree with the person who wants to buy the house. The person in question pays the relevant sales price of the house to the bank and terminates the debt of the person withdrawing the loan.
In a sense, the debt belonging to the person withdrawing the loan will be received. When the total loan debt is paid, the related mortgage is removed and the title deed changes hands. However, the new buyer has to pay the entire debt directly to the bank. Because for mortgage removals, banks will want the debt to be paid in full.
What Are The Conditions For Housing Loans?
The two most important points for people who want to apply for housing loans are their income and credit record. Since mortgage loans are high in quantity, your income must be at a level to meet monthly terms. We see that the average monthly maturity in housing loans is around 2-3 thousand TL. Accordingly, your income should be above these amounts at a certain level. On the other hand, it is not possible for people who have a low credit rating, are on the black list or have an ongoing bank debt to use a housing loan.
What are the Documents Required for Housing Loans?
In housing loans, there are some documents that people must legally submit to the bank. With the application, all documents must be prepared and submitted to the branches.
These documents are as follows in all banks:
- Identity card, driver’s license or passport
- Photocopy of the title deed for the house
- Appraisal report
- Employment certificate from the workplace for self-employed workers
- Application form
When you start to prepare the documents mentioned above before the application, you can speed up the process even more. In particular, you can try online pre-applications to make the process run faster. You can see your eligibility for housing loans with pre-applications. If your income and credit record is sufficient, banks will directly invite you to the branch.