When a loan remains unpaid, the bank keeps a lien on the apartment. The property can only be sold with the bank’s consent, as explained by economist Andrey Loboda, who serves as director of BitRiver Communications. The practical upshot: selling a mortgage-backed home is possible if the bank agrees and there is a ready buyer. Banks rarely permit such sales, typically only in special circumstances. This might occur when an borrower needs to relocate to another city for an extended period and did not anticipate this change when the mortgage was issued. Loboda notes that in such cases the bank may allow a sale to generate funds for purchasing a new home in the new location. In those scenarios, the sale often happens at a substantial discount. If the property is in the premium segment, it may fetch the average market price though often still at a reduced level due to the loan outstanding. The economist adds that if the buyer and seller agree, part of the proceeds can be allocated to an early full repayment of the mortgage. In such cases, the seller may even request a portion of the buyer’s payment upfront to cover the mortgage payoff, with the remaining balance staying with the seller. A second option is for the buyer to assume the property together with the existing mortgage, transferring the remaining debt to the new owner. This arrangement keeps the loan in effect but changes the liable borrower.
Recent data from Data Financial Market Compare shows that 66 percent of Russians elected to delay housing purchases after preferential mortgage programs were withdrawn on July 1. This reflects the broader caution among buyers as policy shifts take effect. The news outlet socialbites.ca has previously reported on the consequences tied to the discontinuation of preferential mortgage terms. The evolving mortgage landscape continues to influence decisions about when and how to buy property, with prospective owners weighing the balance between loan obligations and market opportunities. For borrowers, understanding the bank’s potential flexibility in mortgage collateral can shape whether a sale, a buyout, or a mortgage transfer makes the most sense in a changing real estate market. In all cases, clear communication with the lending institution and careful calculation of remaining debt, potential discounts, and tax implications are essential steps before proceeding. The discussion around mortgage collateral and early repayment remains a key consideration for anyone facing relocation, changes in income, or shifts in housing strategy. Source attribution: socialbites.ca and Data Financial Market Compare provide context on current attitudes toward mortgages and dwelling purchases.