Taking on a loan could free the original borrower from the object of sale and the associated loan in one go.
Ongoing loans can be a permanent financial as well as psychological burden. Especially with involuntary sales, the assumption of a loan can be regarded as a liberation for the seller.
All facts about the guidebook “Take over credit” at a glance:
- Taking over a loan can be required for a variety of reasons.
- Cars and houses can be sold together with the credit.
- To take out a loan, the lender must agree.
- The contract details should be verified by independent third parties.
1. Why to take a loan?
Especially in the course of a home purchase, it can happen that the previous owner not only the house, but also equal to the associated loan in the repurchase (read also: Securities Loan ). The eternally cautious may think at this point “so favorable the conditions can not be yes, if the owner must sell the house.”. The reasons to sell a house go far beyond death or private bankruptcy. Behind the scenes it is rumored that every third house falls victim to divorce. But even a change of job or unplanned offspring can lead to this decision.
Even with car purchases, it is possible to extend the credit for a car. It is not uncommon to have to sell a functioning car before the loan has been paid off. Here are the reasons much more diverse than the house sale. Most understandable here is the unplanned offspring. Suddenly the bulky child seat, the allegedly space-saving collapsible stroller and the diaper bag in the size of a trekking backpack in the car must be accommodated. This does not work with a two-door car.
Whatever the reasons for selling a house or a car, the fact is that most of the time an open credit has to be provided. A premature replacement of the sale of home or car is unfortunately usually only possible with financial disadvantages, as banks here require a so-called prepayment penalty.
In this respect, an alternative would be to invest the proceeds of sale on another account profitably and to finance the monthly installments. However, this is again associated with a lot of research for the best investment opportunities. Therefore, a cost-effective alternative is the destruction of all contaminated sites. Although in most cases you can not make a profit here, the debts are paid in one fell swoop.
However, this business can also be worthwhile for the acquiring borrower. Especially in times of rising interest rates, the acquisition of old loans with favorable conditions seems like a gift. Only the lender could see a disadvantage here. After all, he would receive higher interest payments in a new contract.
All involved in a sales process with credit agreement
There are actually many reasons for choosing to take out a loan. Often a sudden life event is to blame. Buyers and sellers can benefit equally, but then the lender is disadvantaged.
2. Change the borrower in 3 steps
As with a premature termination of the rented apartment also the taking over of a loan or a loan violates the contractual agreements. Therefore, only the tenant or borrower is required to find a successor.
1. The search for the borrower
Here often arise the first problems. First, someone must be found who wants to acquire the object the loan finances. Subsequently, this person must be convinced to take over the existing loan. The search for potential buyers can be done in the classic way by newspaper advertisement, on the Internet or via brokers, or car dealerships. The credit transfer can be mentioned here, but is not common. This aspect can be mentioned with serious interest.
In the case of a home purchase, the loan is usually not the full volume of the purchase price. The rest must be financed with additional loans. In the case of favorable credit conditions, an increase in the loan amount can also be considered here. Since many potential buyers will think twice whether the purchase of the house is worth this extra effort. But only with the consent of the buyer is the takeover of the loan not yet sealed.
2. The approval of the lender
Of course, even in the case of loan assumptions, the potential borrowers are scrutinized by the lenders. They go through the same procedure as the first borrowers. Their working conditions, living conditions and past payment history are examined. And in case of doubt, it can also come here to refusals of the loan application. The classic reasons here are too high a lending volume for the current living conditions, unfavorably chosen installment payments and / or negative Private credit entries.
For more information on this topic, see the guide “What can be done if the loan has been rejected?”. In any case, the personal conversation with the bank consultant should be sought here. Often, in the discussion, solutions are found that are much closer than the layman can believe.
3. The written fixing of the contract details
At this point, extreme caution is required. Already the lack of a passage can not make the contract ineffective, but take the former borrower even after years in the obligation. In any case, this should be a look at independent third parties with an understanding of contracts and finance. Certainly this will incur additional costs. However, these will be far below those that result from non-compliance with legally relevant requirements.
The problem with credit agreements is that they are covered by the law of obligations and are freely definable. All you need to do is specify the borrower and lender, the loan amount and the term. All other configurations of the contract are in the hands of the contractors. Of course, these freedoms are beneficial in terms of individual adjustments to loan agreements or innovative financing ideas. However, they also carry the risk of over-delivery of individual contractual partners. If the contract does not contradict the so-called Wuchergesetz §138 paragraph II BGB, this fact is difficult to prove.
Especially as it is in the case of loan assumptions less about Übervorteilung, but actually to the exclusion of any consequences after the rejection of the loan agreement. Simply put, by giving the signature under the contract, the former debtor does not want to have anything to do with the loan.
The way to take over the loan
The loan may be taken over by a new buyer if the lender agrees to the plan and the contract details are checked for correctness.
3. The conclusion: special care is the prerequisite for taking over loans
It could all be so easy: a house or car is sold and with it all the associated debts! At best, even other loans can be compensated with the profit and one looks forward to a debt-free life.
Unfortunately, at this point, other people have a say: the buyer and the creditor.
Both have to be brought together to reach a contract in the sense of the former borrower. From the point of view of the buyer, unfavorable credit conditions and, in the case of the creditor, insufficient creditworthiness speak against it. But even if there is no objection to be made on both sides, caution is required for the seller. The credit agreement must be overwritten with all consequences. If the euphoria predominates at this moment and premature conclusion of the contract occurs, claims may still be asserted against the seller in the future.
In order to escape this fate, cooperation with an independent third party, familiar with contract law and finance, is recommended. If all these facts are taken into account, nothing more stands in the way of a contract takeover.