Mortgage foreclosure: keys to sell your property

Mortgage foreclosure: keys to sell your property

Before carrying out the sale, it is essential to make sure that the property is free of encumbrances, both economic and registry. We explain you the steps necessary to carry out the cancellation of a mortgage in Fuerteventura, stopping at the required documents and processes.

What is the cancellation of a mortgage?

Before getting into the practical details, it is essential to understand what exactly is involved in the cancellation of a mortgage. Generally speaking, there are three situations that can lead to cancellation:

  • Paying the last installment of the mortgage loan: this step implies paying off the debt in full, which means that the property is free of economic burdens.
  • Early cancellation of the mortgage: this refers to an early amortization of the outstanding principal, allowing the debt to be paid off before the established term.
  • Lifting or cancellation of the registry: this procedure involves officially freeing the property from encumbrances in the Land Registry, ensuring that there are no legal impediments to the sale.

In this article, we will focus especially on the third case, where the debt has been paid off financially, but still appears in the Land Registry, hindering the sale of the property.

Steps to cancel your mortgage

The cancellation of a mortgage involves a series of steps that must be followed meticulously. The following are the necessary documents and procedures:

  • Request a zero debt certificate from the bank: this document, which can be obtained free of charge, serves to justify that the mortgage loan is fully paid.
  • Preparation of a mortgage cancellation deed: once the zero debt certificate has been obtained, a public deed of cancellation of the loan is prepared. This deed is signed before a notary and is essential for the process.
  • Pick up the cancellation deed at the notary’s office: once the deed has been prepared, it must be picked up at the corresponding notary’s office, paying the associated costs.
  • Completion of form 600 of the Stamp Tax: this step involves going to the Tax Office to complete and stamp the tax form. Filing can be done in person or online with the electronic ID card.

Subsequently, it is crucial to present the corresponding documentation at the Land Registry to complete the process.

How long does it take to cancel the registration of a mortgage?

Once all the aforementioned formalities have been completed, the next step is to wait for the notification from the registrar, who will inform that the registration of the cancellation is effective.

How long can this process take? Generally, the lifting of cargo at the Registry can be delayed for about 15 days, although this period may vary. After this time, you must return to the Registry to pick up the deed of cancellation, already with the annotation that certifies the cancellation of the mortgage.

Additionally, if 20 years have elapsed since the end of the term stipulated in the deed, there is the option of cancellation by expiration, a simpler procedure that allows the cancellation to be requested directly from the Land Registry.

How much is it worth to pay off a mortgage?

While paying off a mortgage means the end of the debt, it is not without associated costs.

  • Notary’s office: a fee must be paid to process the cancellation deed, which varies according to the amount of the mortgage and generally ranges between 90 and 240 euros.
  • Registration of the deed of cancellation: this procedure also entails an expense, usually around 35 euros, for the registration of the deed of cancellation and taxes at the Land Registry.
  • Early cancellation fee: in some cases, if the mortgage is cancelled before the established term, an early can cellation fee may be applied. It is essential to review the mortgage contract to verify the existence of this clause.

Despite the associated costs, the cancellation of a mortgage is a fundamental step to guarantee the free disposal of the property and facilitate its sale.selling home guide

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